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Chart Patterns - BIG M


BIG M

- Identification Guideline

  • Rise

Price makes a steep move higher, often in a straight-line run, leading to the first peak.

  • Height

The height from the launch price to the first peak should extensive, often twice as tall as the distance from the first peak to the bottom of the valley between the two peaks

  • Two peaks

Two peaks top out near the same price but allow variation. The average price difference between the two peaks is about 1%

  • Breakout

When price closes below the lowest valley between the two peaks, a breakout occurs and you have a valid big. If, instead of breaking out downward, price first closes above the highest peak, then you do don’t have a big M.

  • M Shape

The chart pattern should look like M once it completes

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