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I've noticed that many beginners in crypto trading focus only on indicators but miss the most important thing – price patterns. Honestly, trading patterns often work better than a bunch of complex oscillators.
Let me tell you about three patterns that really help read the market. Double top and double bottom are classics. When you see a double top, it's a signal that the bulls are losing strength and a reversal downward may occur. With a double bottom, on the other hand, it indicates support and a potential price recovery.
Then there's head and shoulders. This is a more complex reversal pattern, but if it forms after a prolonged uptrend, it almost always signals a decline. I've seen this on charts many times, and it works.
And also, the flag with a pennant – these are continuation patterns. They show that the market is consolidating before continuing its main movement.
An important point: when working with trading patterns, always look at the volume. Without confirming signals, a pattern can be false. This is critical for risk management.
How do you use patterns? I’m interested to hear your observations and practical examples.