📈 16 Must-Know Chart Patterns for Crypto Traders
These classic patterns help traders spot potential reversals or trend continuations, making them essential tools for anyone trading on Binance.
🔄 Reversal Patterns
1. Double Bottom – Bullish reversal; price hits support twice forming a “W”.
2. Inverted Head & Shoulders – Bullish reversal with three dips; breakout signals uptrend.
3. Double Top – Bearish reversal; price tests resistance twice forming an “M”.
4. Head & Shoulders – Bearish reversal with three peaks; drop below neckline confirms downtrend.
🔁 Continuation Patterns
5. Bullish Channel – Price moves upward within parallel lines; trend continues.
6. Bull Flag – Steep rise followed by slight dip; breakout means further upside.
7. Bearish Channel – Price moves downward within parallel lines; trend persists.
8. Bear Flag – Sharp drop, then slight rise; breakdown signals more downside.
📦 Neutral/Consolidation Patterns
9. Bullish Rectangle – Sideways range; breakout up confirms bullish trend.
10. Bullish Pennant – Small triangle after a rise; breakout resumes uptrend.
11. Bullish Triangle – Rising support with flat top; breaks upward.
12. Bullish Wedge – Tight, downward sloping; breaks upward.
13. Bearish Rectangle – Sideways range; breakdown continues the fall.
14. Bearish Pennant – Small triangle after a drop; breakdown resumes downtrend.
15. Bearish Triangle – Falling resistance with flat support; breaks downward.
16. Bearish Wedge – Tight, upward sloping; breaks downward.
🧠 Tip: Combine patterns with volume and trend analysis for better accuracy.
