I've noticed that many newcomers to crypto focus only on indicators but miss the most important thing — trading patterns. And it's true—they often provide the most reliable signals.



Trading patterns are not magic; they are simply recurring structures on the chart that the market draws again and again. I would highlight three that really work.

The first is double top and double bottom. See how the price approaches the same level twice and bounces off? That's a reversal signal. A double top indicates that the bulls are weakening, and the price may turn downward. Conversely, a double bottom is a support level, often followed by a rise. These patterns tend to work quite often in trading if you identify them correctly.

The second is head and shoulders. A classic reversal pattern that forms after an uptrend. It looks like this: an upward move, a pullback, a bigger upward move (the (head)), another pullback, then a smaller rise (the (second shoulder)). When the pattern completes, expect a price decline.

The third is flag and pennant. These are continuation patterns, not reversal ones. They show that the trend is taking a pause, consolidating, and then will continue in the same direction. Very useful when you're already in a trend and want to understand if it will continue.

What I've noticed over the years is that patterns work best when you look at volume. If volume confirms the move, the signal is much stronger. Patterns without volume are just pretty pictures on the chart.

Do you use patterns in your approach? Which ones do you like the most?
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