Analyzing BCHUSDT using the double Top Strategies and the result obtained

Hello, my dear friends, It's another day in my cryptocurrency analysis and I will be taking us through one of the patterns which is commonly traded by many traders in the crypto market.

As a trader in the crypto world, I have always advised other traders to trade trends or trade patterns. In the market, we always see history repeating itself and that is the reason for having various support and resistance levels.

I have told us before that when we see a double top in a price action chart, the next move we should be expecting after the break of the neckline is a downward movement.

From the above chart, I took into consideration a pair of BCHUSDT on a 15M timeframe. This is more of a scalping trading because I only took into consideration a smaller timeframe. The reason is I wish to catch a little from the market as the opportunity presents itself.

Before this time, we saw the market making a series of higher highs which means it is moving in an upward direction. The market was bullish for a while then we saw a retracement that gave us the first top and another impulsive move with a retracement that gave us the second top.

Seeing that formation, I drew my neckline on the chart as seen above. I also waited for the closure of the 15M candle on the chart after the break of the neckline before entering the trade. From the image below, you can see the trade running in profit already.

The image above shows the profit made on the trade already. As I said earlier, since I'm analysing the market in a very small time frame, it's a scalp trade and for that reason, proper risk management is required to keep me longer in the market.

From the screenshot above, I have made about 7% of my capital with about $0.98 profit. The leverage used is 5X because the market on this lower timeframe is very volatile and I don't want to lose any money to the market.

At the point of entry into the market, I took a risk of 5% which is about $0.6 but my profit for the trade is unlimited as I didn't set a take profit level for the trade because I was monitoring it and I was certain that the movement downward won't take much time because the analysis didn't cover for a longer timeframe.

Every good trader must keep to himself the probabilities of profit options on his side although we all know that we can also lose. Always ensure that your losses are sometimes negligible because if you lose much on trade then you are not a good trader. So there friends, I hope this proves the efficiency of the double top strategies.

Always do your best to trade patterns because most times they repeat themselves 100% in the same way as the previous. We see again guys in my next post. Thanks for your time.

Disclaimer: ^{This post is made as an education and not investment advice. Digital asset prices are subject to change. All forms of crypto investment have a high risk. I am not a financial advisor, before jumping to any conclusions in this matter please do your research and consult a financial advisor.}