What is a Blow off Top in Trading? | Chart Patterns

in Project HOPE3 months ago

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Trading is a very broad profession, there are many ways to analyze and read a chart, which makes life easier for the investor in a certain way, however, outside what is a traditional and basic "Technical Analysis", there are relatively advanced chart patterns and very difficult to trade that can be very profitable for anyone with some experience in the market.

In that sense, I come here to bring you one of these patterns that usually happens frequently and that you investors/analysts could in some way take advantage of and study according to the guidelines that I will detail in the course of this publication. Be careful, this is not an investment recommendation, I am just an investor who provides education through platforms like this and of course it is very helpful to the community since we basically work and perceive Cryptomoney.

What is a Blow Off Top?


This is an advanced type of charting pattern, where a rapid and violent price movement occurs with a large volume of trading, followed by a fall of equal or similar proportion to the price rise. Usually the abrupt price movement happens in an upward direction, although you can hear and see it easily on the chart, the truth is that it is not easy to trade it, because, at the slightest error on our part, it can bring significant losses to our trading account.

These sudden movements, also called bump stops, can happen in any market, either:


Key aspects to operate it


  • The price movement that triggers these strong movements can occur either from high impact news around the asset, speculation or coordinated movements of the strongest market players (Whales).

  • Basically this price rise is accompanied by a large volume of trading, as well as its fall, this can be a very good signal to detect this pattern.

  • We must be very clear that when the fall of prices occurs, it does not happen immediately, because it can last even weeks or many times 4 or 5 days until the fall of prices begins with a large volume of negotiation and dimensions very similar to the upward movement.

  • When the abrupt price increase happens, there are no "Pullbacks", in short, the price rises so vertically that there are no breaks in the price, this could tell us as investors that, we are facing a probability of a "Blow Off Top" pattern.

Blow Off Top graphic example


Blow Off Top en el Bitcoin.png

Image of TradingView

Final recommendations


Recognizing each of these key aspects that I mentioned above could identify a pattern of "Blow Off Top", we must also be very careful when operating it, as we can lose a lot of money if we do not identify well the areas where we are. As always and to leave this publication so far not to make it so long and tedious, I will soon be launching the next parts of the open sections in my blog, plus varied content regarding patterns or indicators that I usually use to trade the financial markets.

Note: I am gathering a team of market traders, in order to analyze and trade together, making team is easier to see all the opportunities that this gives us to obtain greater profitability and consistency. If you are interested contact me, until a next post.


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this is really educative, am still learning about trading/chart reading. have seen this type of blow off top in trading and i use to think price is really going high and like a good time to enter for long but at times price will just come back to where it pick off. have lot to learn from your blog

If this is my friend @valchiz, we must always be very careful to enter at the right time, basically it is a matter of first identifying where we are, whether in a demand or supply zone, this will allow us to make a decision in time, question of not entering late


Have you used this method yourself in your trading journey?

Greetings friend @chesatochi.

If I have used it, I have practiced entering when this pattern occurs. Although it is quite complicated to do so, since I have of course always lost by placing my Stop Loss, but the practice has allowed me to read the assets better and to be able to see the traces left by the whales.


Not just DeFi , the recent days witnessed strange price rises with many coins ...(OMG,Numera ..etc)
sooner or later, I think there is a fall of prices will occur
Thank you for sharing your thoughts ..very educative

Greetings friend @qsyal, it is correct, sooner or later will come a fall or correction of prices, although personally I think we are still in a good time, however, we must be very attentive to what we say the graphics and the market, to know when to invest or leave the asset.


Hello @lenomc21.

Excellent post to educate us on financial and investment matters when trading. Greetings and thanks for sharing.