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I've noticed that many beginners in crypto trading get stuck only on indicators, but they miss the most important thing — the patterns that the market draws itself. Honestly, learning to read these trading patterns is half the success.
Here's what really works. Double top and double bottom are classics. When you see a double top, it's a clear signal that the bulls are running out of steam. The price tries to rise twice but can't — and then drops. Conversely, a double bottom shows support, and after that, a rise often follows. Patterns like these are very reliable if recognized correctly.
Then there are head and shoulders — a truly classic reversal pattern. If it forms at the end of an uptrend, get ready for a decline. It's not 100%, but the probability is high.
And flags and pennants are continuation patterns. They show that the trend is just taking a pause, consolidating, and will then continue in the same direction. When you see such patterns, it's often a good moment to enter.
The main thing is not to forget about volume. Trading patterns work much better when confirmed by trading volumes. Without that, they are just pretty pictures on the chart. I always check for confirming signals before opening a position.
Who else uses patterns in their strategies? I'm curious which ones work best in the current market conditions.