Chart Patterns That Speak Volumes
Understanding candlestick patterns is essential for navigating the crypto markets. One of my go-to patterns for trend reversals is the Hammer—a strong signal after a downtrend, often hinting at bullish momentum. Conversely, the Shooting Star warns of potential downtrends after upward moves.
For trend identification, I watch for Higher Highs and Higher Lows in uptrends and the opposite for downtrends. These structural patterns are reliable signs of market direction.
When it comes to breakouts, Triangles are key. Ascending triangles often signal bullish breakouts, while descending triangles lean bearish. Volume confirmation adds extra confidence to these moves.
Chart patterns aren't guarantees—but they’re powerful tools when paired with risk management and market context. By mastering these basics, you turn the charts into a language that reveals the market's intentions before it makes its next move.
