There are two forms of bimodal inversion, double top and double bottom, which is what we generally call m top and w bottom. These two forms appear very frequently in the exchange rate trend, so it is very meaningful to study them for actual investment.
Let's start with m-top. In the process of rising trend, the price met resistance at a certain point, so a high point appeared. After that, the exchange rate fell back normally and began to stop falling with the support of the uptrend line, so this decline will stop near the uptrend line. Then continue to rise, but the strength of many parties is obviously not enough, and the rising height is insufficient. At a point close to the previous high, the exchange rate was under pressure again. After the overshoot failed, the exchange rate turned down, thus forming an M-top.
Generally speaking, there are two possibilities: one possibility is that the exchange rate is supported by the support line again and rises in the process of falling back. At this time, the exchange rate runs in the price range between the support line and the first two high points. This is likely to evolve into other forms such as triangles. Another possibility is that the exchange rate broke through the support level of the trend line and continued to fall. At this time, a classic form of double-top reversal breakthrough is a form that can make investors profit and make a lot of profits. The decline of a double-top inverted broken shape is 1.3 times that of the shape itself.
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