Crypto Trading 101: Simple Charting Patterns Explained

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Summary

However, you should dedicate a decent amount of time in getting to know particular patterns that form during different time frames around the particular asset you are interested in. Double Top The double-top pattern is one of the most recognizable and common charting patterns traders use to determine a change in a current trend. Further, they can help distinguish between what is real and what is false when a break occurs, by using certain formations to dismiss particular price movements. In the world of crypto trading, recognizing patterns can yield more than insights. The handle should resemble a bull flag, in which the price appears to be heading in the opposite direction of the current trend.

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In the world of crypto trading, recognizing patterns can yield more than insights.

In fact, this skill is what traders use to determine the strength of a current trend during key market movements and to assess opportunities for entries and exits. In short, patterns can be useful in determining which direction price is likely to go.

Further, they can help distinguish between what is real and what is false when a break occurs, by using certain formations to dismiss particular price movements. However, you should dedicate a decent amount of time in getting to know particular patterns that form during different time frames around the particular asset you are interested in.

The better you become at spotting these patterns, the more accurate your trades develop, with the added ability to dismiss false breakouts as they appear.

Below are three examples to help you along your journey to mastering the charts:

1. Head and Shoulders

The infamous...

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