Performance of Top and Bottom Reversal Patterns in the Cryptocurrency Markets (USD Traded Pairs)
Warning: Examples May Have Limited/Insufficient Sample Sizes for Proper Statistical Analysis. Remember, this project focuses only on the top 100 cryptos and their limited history! Combined averages are provided here.
BTC/USD (TradingView chart)
Double Top
Following an uptrend, two distinct highs at or nearly at the same level with a bearish “valley” in between. Traders can use a “neckline” drawn from the valley low to mark and entry. Or, if applicable, a diagonal neckline (as highlighted above).
USD(T) Traded Pairs
Number of Double Tops examined: 52
Avg. % decline from neck line to next relative trend reversal: -63%
Combined USD(T)/BTC Pairs
Number of Double Tops examined: 97
Avg. % decline from neck line to next relative trend reversal: -59%
ETC/BTC (TradingView chart)
Double Bottom
Following a downtrend, two distinct lows at or nearly at the same level with a failed bullish rise in between. Traders can use a “neckline” drawn from the peak of the failed rise to mark and entry. Or, if applicable, a diagonal neckline may be used by a more aggressive trader.
USD(T) Traded Pairs
Number of Double Bottoms examined: 63
Avg. % rise from neckline to next relative trend reversal: 218%
Avg. rise from neckline to relative trend reversal (excluding outliers over 400%) = 118.5%
Avg. rise from neckline to relative trend reversal (excluding gainers over 100%) = 75.5%
Combined USD(T)/BTC Pairs
Number of Double Bottoms examined: 126
Avg. % rise from neckline to next relative trend reversal: 205.5%
Avg. rise from neckline to relative trend reversal (excluding outliers over 400%) = 125%
Avg. rise from neckline to relative trend reversal (excluding gainers over 100%) = 68.5%
REP/BTC (TradingView chart)
Rounding Top
Following an uptrend, a period of consolidation indicating a top marked by higher highs turning to lower highs with a rounded, gradual, slope.
USD(T) Traded Pairs
Number of Rounding Tops examined: 15
Avg. % decline from neckline to next relative trend reversal: -51%
Combined USD(T)/BTC Pairs
Number of Rounding Tops examined: 20
Avg. % decline from neck line to next relative trend reversal: -52.5%
BTS/USDT. (TradingView chart)
Rounding Bottom
Following a downtrend, a period of consolidation indicating a bottom marked by lower lows turning to higher lows with a rounded, gradual, slope.
USD(T) Traded Pairs
Number of Rounding Bottoms examined: 14
Avg. % rise from neckline to next relative trend reversal: 512%*
Avg. rise from neckline to relative trend reversal (excluding outliers over 400%) = 156%
Avg. rise from neckline to relative trend reversal (excluding gainers over 100%) = 16.5%
Combined USD(T)/BTC Pairs
Number of Rounding Bottoms examined: 32
Avg. % rise from neckline to next relative trend reversal: 429%*
Avg. rise from neckline to relative trend reversal (excluding outliers over 400%) = 163%
Avg. rise from neckline to relative trend reversal (excluding gainers over 100%) = 25.5%
HT/USDT (TradingView chart)
Head and Shoulders Top
Following an uptrend, three consecutive highs with the middle one being highest. The other two similarly lower highs surrounding the highest high create the appearance of a head and two shoulders.
USD(T) Traded Pairs
Number of Head and Shoulders Tops examined: 21
Avg. % decline from neck line to next trend reversal (relative to the examined pattern): -53%
Combined USD(T)/BTC Pairs
Number of Rounding Tops examined: 42
Avg. % decline from neck line to next relative trend reversal: -55.5%
BTC/USD (TradingView chart)
Inverted Head and Shoulders Bottom
Following a downtrend, three consecutive lows with the middle one being lowest and two surrounding similarly higher lows creating the appearance of an inverted head and two shoulders.
USD(T) Traded Pairs
Number of Inverted Head and Shoulders Bottoms examined: 10
Avg. % rise from neck line to next trend reversal (relative to the examined pattern): 238%
Avg. rise from neckline to relative trend reversal (excluding outliers over 400%) = 161%
Avg. rise from neckline to relative trend reversal (excluding gainers over 100%) = 76%
Combined USD(T)/BTC Pairs
Number of Inverted Head and Shoulders Bottoms examined: 22
Avg. % rise from neckline to next relative trend reversal: 200%
Avg. rise from neckline to relative trend reversal (excluding outliers over 400%) = 111.5%
Avg. rise from neckline to relative trend reversal (excluding gainers over 100%) = 63.5%
ETC/BTC (TradingView chart)
Triple Top
The triple top is similar to a double top but with three equal or near equal highs and two valleys in between.
USD(T) Traded Pairs
Number of Triple Tops examined: 7
Avg. % decline from neck line to next trend reversal (relative to the examined pattern): -57.5%
Combined USD(T)/BTC Pairs
Number of Triple Tops examined: 16
Avg. % decline from neck line to next relative trend reversal: -63%
HT/BTC (TradingView chart)
Triple Bottom
The triple bottom is the counterpart to the triple top but with three equal or near equal lows and two failed rallies in between.
USD(T) Traded Pairs
Number of Triple Bottoms examined: 2
Avg. % rise to next trend reversal (relative to the examined pattern): 1,668%*
Avg. % rise to next trend reversal (excluding outliers over 400%) = 34%*
Avg. % rise to next trend reversal (excluding gainers over 100%) = 34%*
Combined USD(T)/BTC Pairs
Number of Triple Bottoms examined: 8
Avg. % rise to next trend reversal: 480.5%
Avg. % rise to next trend reversal (excluding outliers over 400%) = 72%
Avg. % rise to next trend reversal (excluding gainers over 100%) = 47%
Symmetrical Broadening Wedges
Symmetrical broadening wedges are also commonly known as broadening tops and bottoms., inverted or reverse symmetrical triangles, or some traders simply call them megaphones. As you can see below, they have a propensity to breakout and then backtrack before continuing a reversal.
BNB/BTC (TradingView chart)
Broadening Top
A symmetrical broadening wedge pattern frequently found at the top of a trend; however, some can act as continuations. Preceded by an uptrend, a series of higher highs and lower lows create repelling support and resistance lines and form a symmetrical fan shape.
USD(T) Traded Pairs
Number of Broadening Tops examined: 9
Avg. % decline to next trend reversal (relative to the examined pattern): -43.5%
Combined USD(T)/BTC Pairs
Number of Broadening Tops examined: 30
Avg. % decline to next relative trend reversal: -35%
DCR/BTC (TradingView chart)
Broadening Bottom
A symmetrical broadening wedge pattern frequently found at the bottom of a trend; however, some can act as continuations.. Preceded by a downtrend, a series of higher highs and lower lows create repelling support and resistance lines, which forms a symmetrical fan shape.
USD(T) Traded Pairs
Number of Broadening Bottoms examined: 5
Avg. % rise to next trend reversal (relative to the examined pattern): 54%*
Avg. % rise to next trend reversal (excluding outliers over 400%) = 54%*
Avg. % rise to next trend reversal (excluding gainers over 100%) = 39%*
Combined USD(T)/BTC Pairs
Number of Broadening Bottoms examined: 12
Avg. % rise to next trend reversal: 96.5%
Avg. % rise to next trend reversal (excluding outliers over 400%) = 67%
Avg. % rise to next trend reversal (excluding gainers over 100%) = 58%