Today, I revisited Dow Theory and came across an interesting topic. Initially, the Dow Jones Industrial Average predicted a market entering a bear cycle solely based on chart patterns, but none of the theories supported the occurrence of a bear market. Relying only on chart patterns, the market subsequently experienced a severe failure. This made me think of Bitcoin's current trend, which also shows a head and shoulders bottom pattern. If we rely solely on chart patterns for entry points, besides resisting against single orders and being stopped out, it highlights an important point: never rely solely on chart patterns as a trading standard.
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Today, I revisited Dow Theory and came across an interesting topic. Initially, the Dow Jones Industrial Average predicted a market entering a bear cycle solely based on chart patterns, but none of the theories supported the occurrence of a bear market. Relying only on chart patterns, the market subsequently experienced a severe failure. This made me think of Bitcoin's current trend, which also shows a head and shoulders bottom pattern. If we rely solely on chart patterns for entry points, besides resisting against single orders and being stopped out, it highlights an important point: never rely solely on chart patterns as a trading standard.