📊 The Ultimate Beginner’s Guide to Crypto Chart Patterns – Trade Like a Pro with These 4 Signals!💯💯
-*1. Head and Shoulders (Bearish Reversal)**
- **What it looks like**: Three peaks—middle one (head) is the highest, and the two sides (shoulders) are lower. The "neckline" connects the lows between the peaks.
- **What it means**: Signals a trend reversal from bullish to bearish. Price often drops after breaking the neckline.
- **How to trade**: Sell when price breaks below the neckline. Set stop-loss above the right shoulder.
- **Success rate**: ~80% for beginners .
2. Inverse Head and Shoulders (Bullish Reversal)**
- **What it looks like**: Mirror image of the Head and Shoulders—three lows with the middle one (head) lowest.
- **What it means**: Signals a trend reversal from bearish to bullish. Price often rises after breaking the neckline.
- **How to trade**: Buy when price breaks above the neckline. Set stop-loss below the right shoulder.
- **Success rate**: ~80% .
3. Double Top (Bearish Reversal)**
- **What it looks like**: Two peaks at roughly the same price level, forming an "M" shape.
- **What it means**: Buyers fail to push price higher twice, signaling a downtrend.
- **How to trade**: Sell when price breaks below the support line (low between the two peaks).
- **Success rate**: ~80% .
*4. Double Bottom (Bullish Reversal)**
- **What it looks like**: Two lows at roughly the same price level, forming a "W" shape.
- **What it means**: Sellers fail to push price lower twice, signaling an uptrend.
- **How to trade**: Buy when price breaks above the resistance line (high between the two lows).
- **Success rate**: ~80% .
*Tips for Trading Patterns:**
1. **Wait for confirmation** – Don’t trade until the pattern fully forms and breaks out.
2. **Use stop-losses** – Protect your capital if the trade goes against you.
3. **Trade with the trend** – Patterns work better when aligned with the overall market trend.
4. **Start with higher timeframes** (e.g., 4-hour or daily charts) for more reliable signals .