Understanding Chart Patterns

Chart patterns are visual formations on price charts that traders and analysts use to predict future price movements. They are essentially a graphical representation of the battle between buyers and sellers, and recognizing them can provide valuable insights into market psychology.

Different patterns suggest different outcomes. Some, like flags or pennants, indicate a continuation of the current trend after a brief pause. Others, such as head and shoulders or double tops/bottoms, often signal a potential trend reversal.

By studying these patterns, you can gain a better understanding of potential entry and exit points, as well as set realistic price targets and stop-loss levels. Remember, while chart patterns are powerful tools, they are most effective when used in conjunction with other technical analysis indicators and a sound risk management strategy.#CEXvsDEX101 #FTXRefunds