Summary of 11 Candlestick Patterns by Legendary Traders

All candlesticks reflect market psychology, and the market environment determines the effectiveness of candlesticks. If trends are the cornerstone of trading, then support and resistance levels must be validated by candlesticks. As a qualified trader in the crypto space, it is essential to understand these fundamental concepts. The following are eleven classic candlestick patterns:

1. Double Bottom/W Bottom: The price of the coin reverses upward after testing the bottom twice, forming a W-shaped bullish pattern.

2. Descending Flag: The price of the coin continues to decline after a brief consolidation, resembling a flag-like bearish pattern.

3. Ascending Triangle: The price of the coin oscillates between a horizontal resistance line and an ascending support line, ultimately breaking upwards, indicating a bullish pattern.

4. Head and Shoulders Top: The price of the coin forms a left shoulder, head, and right shoulder, then reverses downward, signaling a bearish reversal.

5. Ascending Flag: The price of the coin continues to rise after a brief consolidation, resembling a flag-like bullish pattern.

6. Descending Triangle: The price of the coin oscillates between a horizontal support line and a descending resistance line, ultimately breaking down, indicating a bearish pattern.

7. Multiple Bottoms/Broken Bottom Reversal: The price of the coin breaks through after touching low points multiple times, forming a bullish reversal pattern.

8. Ascending Wedge: The price of the coin operates within a converging ascending channel, usually signaling a downward reversal, indicating a bearish pattern.

9. Rectangle Consolidation: The price of the coin oscillates horizontally between parallel support and resistance, signaling continuation or reversal.

10. Rounded Cup and Handle: The price of the coin forms a rounded bottom and then briefly consolidates, resembling a cup handle, indicating a bullish pattern.

11. Expanding Triangle: The price of the coin's fluctuation range gradually expands, forming a diverging triangle, signaling high volatility reversal or continuation.$BTC $ETH #加密项目 #美国加征关税 #币安Alpha上新