#CryptoCharts101

Having a clear understanding of candlestick patterns and basic chart structures is crucial for any trader who wants to make well-informed decisions. Candlestick patterns give a visual insight into price movement and market sentiment, and learning how to interpret them helps in spotting trends, reversals, and breakout opportunities.

I personally look for patterns like bullish engulfing and hammer at the end of a downtrend, as they often indicate a possible reversal. On the other hand, patterns like bearish engulfing or shooting star at the top of an uptrend may signal an upcoming downturn. For identifying trend continuation, I keep an eye on patterns such as flags, pennants, and ascending triangles, which generally suggest a breakout in the same direction as the current trend.

Support and resistance levels are equally important. A price breaking above a strong resistance level with good volume usually indicates a breakout, while a drop below key support can confirm a reversal or continuation of a bearish trend.

For beginners, I recommend combining candlestick patterns with other technical indicators like volume, RSI, or moving averages to get more accurate signals. Chart reading is a skill that develops with time, but with practice, it can greatly enhance both your trading precision and confidence.