#BTCvsETH
Summary of price patterns in technical analysis:
How we trade through chart patterns:
We have talked a lot about the price patterns that form on the chart of a symbol, and we said that they are generally cases of breathing and stabilizing for a while, before the price continues its previous movement or reverses direction.
However, it is not enough to just know how the tool works; we need to learn how to use it. So we decided to talk a little more about how to use these chart patterns because we must gain profits from what we have learned.
Let’s summarize the chart patterns we have learned and classify them according to the signals they provide.
Reversal chart patterns:
Reversal patterns are patterns that indicate that the current trend is about to change and reverse.
If a reversal chart pattern forms during an upward trend, it indicates that the trend will reverse and the price will soon decline.
Conversely, if a reversal chart pattern is observed during a downward trend, it indicates that the price will rise later.
In this lesson, we discussed six chart patterns that provide reversal signals, which are:
1-Double top/bottom
2-Head and shoulders
3-Inverse head and shoulders
4-Rising wedge
5-Falling wedge