Do you look at cryptocurrency charts on Binance and just see a tangle of lines? 🤯 Don't worry! Those charts HIDE 'secrets' about the next price movement. Today we decode 12 key trading patterns for you to learn to read them.

A quick tip: many patterns suggest a 'minimum target' price, calculated by measuring the height of the pattern and projecting it from the breakout point.

PATTERNS THAT INDICATE DIRECTION CHANGES (REVERSAL):

🟢 BULLISH (The price could RISE):

  • Inverse Head & Shoulders: Tells you that a bearish trend could end; a break of the 'neckline' suggests a possible rise.

  • Double Bottom: Tells you that a support level is strong; if the price bounces twice and breaks the intermediate peak, it is a bullish signal (forms a 'W').

  • Falling Wedge with bullish breakout: Tells you that sellers are losing strength; an upward breakout can be explosive.

🔴 BEARISH (The price could FALL):

  • Head & Shoulders: Tells you that a bullish trend could end; a break of the 'neckline' suggests a possible drop.

  • Double Top: Tells you that a resistance level is strong; if the price is rejected twice and breaks the intermediate valley, it is a bearish signal (forms an 'M').

  • Rising Wedge with bearish breakout: Tells you that buyers are losing strength; a downward breakout can mean a significant drop.

INTERACTIVE QUESTION #1: Of these REVERSAL patterns, which one do you find easiest to identify on Bitcoin charts ($BTC or your altcoins)? Comment! 👇

PATTERNS THAT INDICATE THE TREND CONTINUES:

➡️ BULLISH CONTINUATION:

  • Bullish Flag: Tells you that, after a strong rise, the price 'rests' briefly before likely continuing to rise if it breaks the top of the 'flag'.

⬅️ BEARISH CONTINUATION:

  • Bearish Flag: Tells you that, after a strong drop, the price 'bounces' a bit before likely continuing to fall if it breaks the bottom of the 'flag'.

INDecision PATTERNS (TRIANGLES - Watch for the Breakout!):

  • 🔺 Ascending Triangle: Tells you that buyers are pressing a resistance; it usually breaks UPWARDS.

  • 🔻 Descending Triangle: Tells you that sellers are pressing a support; it usually breaks DOWNWARDS.

  • 💠 Symmetrical Triangle: Tells you that there is indecision; the breakout can be in ANY direction, indicating the new trend.

INTERACTIVE QUESTION #2: If you see a Symmetrical Triangle forming, what is the FIRST thing you do in Binance to prepare for the breakout (buy or sell)?

Important for Beginners!

These trading patterns are tools, not 100% certain predictions. Always use them with other indicators (volume, RSI, Moving Averages) and solid risk management (Stop Loss!).

FINAL CHALLENGE:

Open Binance, look for these patterns in your cryptocurrencies. Which one has given you the best results for your trading or investment strategy? Share your experience!

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