If youโre serious about making money in the markets, you must master candlestick patterns. Once you do, the guesswork ends and smart, profitable trades begin. Letโs simplify it:
1. BULLISH CHART PATTERNS โ These point to a potential price rise, usually after a downtrend when buyers start stepping in.
Inverted Head & Shoulders โ A powerful reversal signal; expect the trend to flip upward.
Double Bottom โ The 'W' shape signals strong support and a potential breakout.
Bullish Flag โ A short downtrend that sets up for a big upward move.
Triple Bottom โ Three support touches? Buyers are serious. Reversal incoming.
Cup & Handle โ Smooth dip, slight pullback, then a breakout. Classic continuation.
2. NEUTRAL (INDEFINITE) PATTERNS โ These can go either way, so donโt jump the gun. Wait for the breakout.
Symmetrical Triangle โ Price tightensโฆ then explodes. Direction depends on the breakout.
Falling Wedge โ Looks bearish, often breaks upwardโbut wait for confirmation.
Rising Wedge โ Can fake bullishness before droppingโwatch closely.
Descending Triangle โ Typically bearish, but a bullish breakout is possible with strong demand.
Ascending Triangle โ Generally bullish, but always confirm before entering.
3. BEARISH CHART PATTERNS โ These suggest a potential drop, great for identifying exit points or short setups.
Head & Shoulders โ The gold standard for spotting reversals. Once the neckline breaksโwatch out.
Triple Top โ Price hits resistance three times and fails. Expect sellers to take control.
Double Top โ Like an upside-down 'W'โa clear signal bulls are losing grip.
Bearish Flag โ Small upward correction before a bigger drop. A continuation of the downtrend.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content.ย See T&Cs.
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