📊The most common chart patterns used in cryptocurrency trading, with a simple explanation of what they mean and how to interpret them:
---
📈 CONTINUATION PATTERNS (the price usually continues in the same direction)
1. Flag
🔺 Bullish: the price rises sharply, then drops a bit in a channel, and then continues rising.
🔻 Bearish: the price drops sharply, then rises a bit in a channel, and continues dropping.
📌 It looks like a flag after a pole.
2. Triangle (Symmetrical, Ascending, or Descending)
🔺 Symmetrical triangle: the price moves with less and less strength, but when it breaks, it usually continues the previous trend.
🔼 Ascending: suggests a breakout upward.
🔽 Descending: suggests a breakout downward.
---
🔄 TREND REVERSAL PATTERNS
3. Double Top (M or double peak)
📉 Occurs when the price rises to the same level twice and cannot break it. Then it falls.
❗ Signal of a change from bullish to bearish.
4. Double Bottom (W or double valley)
📈 The price drops to the same level twice and does not fall further. Then it rises.
✅ Signal of a change from bearish to bullish.
5. Head and Shoulders (H&S)
🧍 Looks like a figure with three peaks: one large (the head) between two smaller ones (the shoulders).
📉 It’s a signal of a change from bullish to bearish.
6. Inverted Head and Shoulders
🤸 The opposite of the previous one.
📈 Signal of a change from bearish to bullish.
---
📌 PRACTICAL TIPS
as a note
also study other values: confirm with volume or indicators (RSI, MACD). I have already left you in previous posts what RSI is and the order book, missing the MACD. I will upload it later.
The patterns work better on larger time frames (1H, 4H, daily).
Not all patterns are fulfilled, but they help make decisions with a higher probability of achieving good results; apply them to stable coins. @Saldaña_