When you intend to become a successful Bitcoin or Cryptocurrency trader it is crucial that you have an idea about technical analysis. You have to know all common chart patterns which are repeated frequently te the Bitcoin charts. Those patterns help you to estimate the likeliness of a certain market behaviour te the near future.
There are different groups of chart patterns:
Bullish patterns indicate the likeliness of an ongoing uptrend. Bearish patterns signal that the price is relatively likely to budge further downwards. The third group are the reversal patterns: Those few well known chart patterns often signal that the predominant trend is ending and you can expect a price breakout te the opposite direction.
Albeit those patterns are absolutely no ensure for a certain market behaviour, it is still fact that the likelihood for the expected market stir is significantly higher than another behaviour.
Basically this chart analysis can be used to create your trading project te advance. Meaning that you should have a project ter advance, based on the analysis, where to set your orders, dependently from what you expect the market to do soon.
Professional traders use those patterns together with the so called Fibonacci retracements. This kleuter of chart analysis voorwaarde be seen ter the same way spil the pattern analysis: They indicate the likelihood of certain stops and breakouts of the market price, albeit they of course give no ensure for anything. Again the indicators give you an idea where you should waterput your targets ter advance, for example to set profitable zekering limit orders at points which are most likely going to be kasstuk.
The Three Groups of Common Chart Patterns
Bullish Patterns (price going up)
- Measured budge up
- Symmetrical triangle
- Ascending scallop
- Trio rising valleys
- Cup with Treat
- Ascending triangle
Bearish Patterns (price going down)
- Symmetric triangle
- Trio descending peaks
- Descending scallop
- Descending triangle
- Invertede Cup with treat
- Measured budge down
- Head and shoulders top
- Tops rectangle
- Dual bottoms
- Diamond bottoms
So when you are looking at the Bitcoin charts or the graphs of any other tradable asset, you should be able to identify those patterns instantaneously. Just take a uur to learn how they look like, you’ll quickly get familiar whith those patterns – especially when you begin to recognize them ter the real price movements.
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