📘 Guide to reading the most common patterns in cryptocurrency price charts
#Technical_Analysis #Chart_Patterns #Digital_Trading #Learn_Trading
Charts are not just lines and candles… they are the market's language. Understanding technical patterns helps you predict the next price movement more intelligently.
Here are the main patterns you should recognize:
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1️⃣ Head and Shoulders pattern
🔻 Indication: reversal from up to down
🔍 Description: three peaks – the middle one is higher (the head), and the sides are lower (the shoulders)
✅ Sell signal on breaking below the neckline
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2️⃣ Inverse Head and Shoulders pattern
🔺 Indication: reversal from down to up
🔍 Description: three bottoms – the middle one is deeper
✅ Buy signal on breaking the neckline
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3️⃣ Ascending Triangle
📈 Indication: continuation of the uptrend
🔍 Description: horizontal upper line + ascending bottom
✅ Buy signal on breaking the resistance
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4️⃣ Descending Triangle
📉 Indication: continuation of the downtrend
🔍 Description: gradually declining peak + horizontal support line
✅ Sell signal on breaking the support
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5️⃣ Symmetrical Triangle
🔁 Indication: volatility – either up or down
🔍 Description: peaks and bottoms converging gradually
✅ The signal appears on breakout in any direction
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6️⃣ Double Bottom
🔺 Indication: bullish reversal
🔍 Description: two bottoms at almost the same level
✅ Buy signal on breaking the peak between the two bottoms
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7️⃣ Double Top
🔻 Indication: bearish reversal
🔍 Description: two peaks at almost the same level
✅ Sell signal on breaking the bottom between the peaks
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💡 Advice for beginners:
> Don't just rely on the shape of the pattern… wait for confirmation of the breakout or breakdown, and support your decision with other technical indicators like RSI or MACD
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