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I've noticed that many beginners in crypto trading get stuck only on indicators, forgetting the most important thing – patterns in trading. And yet, this is one of the most reliable tools for reading the market.
Let's understand three classic figures that really work. Double top and double bottom are reversal signals I see all the time. When the price reaches the same level twice and pulls back, it's not for nothing. A double top often precedes a decline because the bulls are losing strength. Conversely, a double bottom indicates support and potential growth.
Trading patterns also include classics like head and shoulders. This reversal figure is very beautiful when it forms. I saw it after a long upward trend – then the price starts to fall. It's one of the most reliable signals.
There are also flags and pennants – they show that the trend will continue. This is a temporary consolidation, a pause before further movement. When you see such a figure, you can be sure that the main trend will soon resume.
The main thing when working with patterns is to always look at volumes and seek confirming signals. Don't rely on just one figure; combine it with other tools. I’ve been using patterns in my strategy for a long time; it helps avoid many mistakes. How do you work with technical patterns? I’d love to hear about your experience.