Recognizing chart patterns is a powerful way to forecast market moves and protect your capital. Let’s break down the three essential pattern types every trader should know: Reversal, Continuation, and Bilateral Patterns.

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🔁 Reversal Patterns – Spot the trend shift early

1️⃣ Double Top – Bearish setup where price forms two highs at the same level, then drops.

2️⃣ Head & Shoulders – Bearish reversal sign with three peaks; the middle (head) is the highest.

3️⃣ Rising Wedge – Tight upward-sloping range that often breaks down.

4️⃣ Double Bottom – Bullish pattern forming two lows before breaking higher.

5️⃣ Inverse Head & Shoulders – Bullish reversal mirror of the H&S pattern, signaling an upside breakout.

6️⃣ Falling Wedge – Downward tightening pattern, usually followed by an upward breakout.👉#CryptoTradingInsights

🔁 Continuation Patterns – Ride the trend further

1️⃣ Falling Wedge – Appears in uptrends; signals bullish continuation.

2️⃣ Bullish Rectangle – Sideways range in an uptrend, breaks upward.

3️⃣ Bullish Pennant – Tight triangle after a strong up move; breakout continues the trend.

4️⃣ Rising Wedge – Can act as a bearish continuation in a downtrend.

5️⃣ Bearish Rectangle – Horizontal channel that breaks lower in a downtrend.

6️⃣ Bearish Pennant – Brief consolidation during a downtrend, followed by further drop.

🔀 Bilateral Patterns – Be ready for action in either direction

1️⃣ Ascending Triangle – Flat resistance with rising support; breakout could go either way.

2️⃣ Descending Triangle – Support holds while lower highs form; breakout direction varies.

3️⃣ Symmetrical Triangle – Squeezing price action between two trendlines; watch for the breakout.

KEY TAKEAWAYS:

✅ Reversal patterns hint at a trend change.

✅ Continuation patterns confirm momentum.

✅ Bilateral patterns mean breakout risk both ways—stay alert!

Mastering these can give you an edge in setting smart entries, exits, and stop-losses.

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