When the stock chips in the crypto circle exhibit a pattern of "double peaks filling the valleys, lower peaks locking positions, upper peaks with decreasing sell orders, and declining volume on downtrends," analysis can be approached from the following perspectives
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When the stock chips in the crypto circle exhibit a pattern of "double peaks filling the valleys, lower peaks locking positions, upper peaks with decreasing sell orders, and declining volume on downtrends," analysis can be approached from the following perspectives
When stock chips present a combination of "Double Peak Filling the Valley,
Lower Peak Lock-in,
Reduced Selling Pressure at the Upper Peak,
Decreasing Volume in Decline,"
the analysis can be approached from the following perspectives:
• Double Peak Filling the Valley: Presence of upper peak trapped positions and lower peak profit-taking chips,
The stock price is in a consolidation range,
A battle between bulls and bears.
• Lower Peak Lock-in: The profit-taking chips at the lower peak have not significantly decreased,
Indicating that major players or long-term investors are not selling off during the consolidation,
They are confident about the subsequent trend.
• Reduced Selling Pressure at the Upper Peak: The selling pressure from trapped positions above is decreasing,
Trapped position holders are gradually accepting the current consolidation pattern or expecting a price rebound,
Reducing their selling actions.
• Decreasing Volume in Decline: During the decline, trading volume shrinks,
Indicating that market selling pressure is not heavy,
Mostly scattered retail investors’ sporadic selling or major players’ shakeout behavior,
Rather than large-scale capital fleeing.
This combination usually signals that the stock is in the late stage of a shakeout.
Major players are clearing out the upper peak trapped positions and unstable profit-taking chips through oscillation,
Lower peak lock-in shows that major players are still involved,
Reduced selling pressure at the upper peak and decreasing volume in decline suggest that selling pressure is gradually exhausted.
If a volume-increasing bullish candlestick breaks through the consolidation range later,
Releasing the upper peak trapped positions,
It often marks the beginning of an upward trend,
Pay close attention to breakout signals.