$BTC For beginners! #Trading_Lessons #Binance
🔥 Have you ever wondered how to predict the next market move? It's all about patterns...
📌 Understanding chart patterns: Chart patterns are visual representations of price movements, and they can indicate the future direction. They are divided into two main types:
1️⃣ Reversal patterns - indicate a change in the current trend.
Examples: Head and shoulders, double top, double bottom.
2️⃣ Continuation patterns - indicate the continuation of the trend in its current direction.
Examples: Flags, pennants, triangles.
💡 Consider it the secret market language - learn to read it, and you'll discover opportunities before others.
📌 **📌 Three powerful chart patterns you should know:
1️⃣ Head and shoulders → Indicates a trend reversal from bullish to bearish. 👤
Formation: Consists of three peaks - the middle peak (head) is the highest, while the sides (shoulders) are lower.
Candle formation: Summits are represented by green and red candles, forming the distinctive shape.
Confirmation: When the price breaks the "neckline" - a support level connecting the two bottoms.
2️⃣ Ascending triangle → Indicates the continuation of the uptrend. 🔺
Formation: A flat resistance line at the top and an ascending support line at the bottom.
Candle formation: Green candles usually dominate, resisting the resistance.
Confirmation: A breakout above the resistance line indicates the trend's continuation.
3️⃣ Double bottom → Indicates the end of the downtrend, signaling a rise. 🔄
Formation: Two distinct bottoms at a close price level, forming a "W" shape.
Candle formation: Strong green candles often appear at the second bottom.
Confirmation: A breakout above the peak between the two bottoms indicates a reversal.**
1️⃣ Head and shoulders ← Indicates a reversal from an upward trend to a downward trend. 👤
2️⃣ Ascending triangle ← Indicates the continuation of the uptrend. 🔺
3️⃣ Double bottom ← Indicates the end of the downtrend, signaling a rise.🔄