Understanding charts isn’t optional — it’s essential. Learn how traders spot patterns, confirm trends, and make confident entries and exits without relying on hype.
Every candlestick tells a story — and the best traders know how to read it.
If you’re relying only on gut feeling or Twitter calls, you’re flying blind.
Patterns That Actually Work
Certain setups repeat across markets — because human emotion repeats too. Here are a few I rely on:
Bullish Flags: A strong upward move, followed by sideways consolidation. I watch for volume and breakout for clean entries.
Double Bottoms: When price fails to go lower after two dips — it often means trend reversal.
Head and Shoulders: I use this to spot tops. When it forms after a strong run, I’m usually planning my exit.
How I Read Trends and Breakouts
I don’t trade just because a coin is moving. I wait for signs.
Trend Reading: I use moving averages and structure (higher highs, higher lows) to confirm trend direction.
Breakout Timing: I wait for confirmation — a candle close above resistance with a volume spike. Fakeouts are easy to spot when volume is weak.
Reversals: RSI divergence and major support holding give me early clues. When price says “it’s done,” I listen.
How Chart Reading Changed My Trades
Before charts, I traded on emotion. Now, I trade on structure.
I enter trades based on setups, not FOMO.
I exit without stress — because I know the levels that matter.
I avoid 80% of bad trades just by waiting for confirmation.
Most people lose money trying to be early.
I’d rather be late and right than early and wrong.
Follow @mythoughts — no hype, just thoughts
#CryptoCharts101 #TradingTypes101