Rounding Top Pattern: How to Use It for Crypto Trading

It’s often said that traders should cut their losers early and let their winners run. While traders may want to let their crypto winners run, an overt focus on HODLing and not taking profits off the table can be dangerous when momentum turns against you and the sentiment of a particular coin or token suddenly becomes bearish. 

To gain a sense of when it’s time to consider closing your existing position, one bearish reversal pattern you may want to consider is the rounding top pattern.

By interpreting the warning signs early and grasping the formation of an upcoming inverted U-shaped top, traders with knowledge of such technical analysis–related patterns can easily establish a short position early or close off a long position before the rounding top pattern fully plays out.

Interested in learning how you can lock in your profits early before a sudden downtrend reversal? In the following guide, we’ll consider how crypto traders can learn to notice early formation of the rounding top chart pattern and set take-profit levels.

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