Venta de Terceros de Chan Complete Guide

The 'third' attempt signifies a final, exhausted effort by buyers to push prices higher. It suggests that after two previous attempts, the market lacks the conviction or buying power to sustain the uptrend, leading to a decisive reversal. It's a common psychological threshold in market dynamics, often indicating a culmination of buying pressure before a capitulation.

El volumen es de importancia crítica. Idealmente, el volumen debería disminuir en cada rally sucesivo hacia los picos, especialmente el tercero, lo que indica un debilitamiento del interés comprador. La señal de volumen más crucial es un fuerte aumento en el volumen cuando el precio rompe por debajo de la línea de cuello, lo que proporciona una fuerte confirmación de la presión de venta y la validez de la reversión bajista.

Conceptually, yes. The 'Chan Third Sell' shares strong similarities with a Triple Top pattern, which is a well-known bearish reversal pattern. Both involve three attempts to break a resistance level, followed by a breakdown. The key distinction, if any, might lie in the specific interpretation of the 'third sell' or the relative heights of the peaks, but the underlying market psychology of buyer exhaustion is the same.

A common method for estimating a price target is to measure the vertical distance from the highest peak of the pattern down to the neckline. This distance is then projected downwards from the point where the price breaks below the neckline. For example, if the highest peak is at $100 and the neckline is at $90, the projected target would be $80 ($90 - ($100 - $90)). This is an estimation and should be used in conjunction with other analysis.

If the third peak is significantly higher than the previous two, it generally invalidates the 'Chan Third Sell' pattern as a bearish reversal. A higher third peak suggests renewed buying strength and a potential continuation of the uptrend, or the formation of a different bullish pattern. For a bearish reversal, the third peak should ideally be lower or at least not significantly higher than the preceding peaks, indicating a loss of upward momentum.