#CryptoCharts101
📈 Mastering the Art of Chart Reading: A Trader’s Edge
Spotting patterns and trends isn’t just technical—it’s strategic. Here's how I approach it:
🔍 Patterns I Watch For:
Head & Shoulders for spotting potential reversals.
Double tops/bottoms as strong reversal signals.
Triangles (ascending/descending) for possible breakout setups.
Flags & Pennants for continuation patterns after a sharp move.
📊 Identifying Trends, Reversals & Breakouts:
Trends: I look at higher highs/lows and use moving averages (like the 50 EMA) as dynamic support/resistance.
Reversals: I watch for divergence between price and RSI or MACD + key candlestick formations (like engulfing candles).
Breakouts: I rely on volume confirmation—breakouts without volume are often fakeouts.
🚀 How Chart Reading Helps Me:
Reading charts helps me avoid emotional entries. For example, I wait for a confirmed breakout with retest before entering long. This helped me avoid several bull traps during fake rallies.