If you have heard terms thrown around in the crypto space like head and shoulders, rising wedge, or bullish flag and are not sure what they all mean, this article (and downloadable PDF) will help you out.
In this article, I cover the top 20 most common chart patterns and what they mean. There is even a downloadable cheat sheet included :)
What are Chart Patterns?
A chart pattern is a shape within a price chart that suggests the next price move, based on the past moves. Chart patterns are the basis of technical analysis and help traders to determine the probable future price direction.
Reading chart patterns has been around for as long as trading has existed and predates the cryptocurrency market.
The patterns described and illustrated in this article are not new. They have been borrowed from the technical analysis, going back to the early 1900s and are similar patterns and terms commonly used in both the stock and Forex markets today.
Top 20 crypto chart patterns:
Although 20 patterns may sound like a lot, it’s only 10 different patterns (as the others are inverted).
These twenty trading patterns are categorized into four groupings:
Triangle Chart Patterns (6)
Rectangle Chart Patterns (6)
Pole Chart Patterns (4)
Exotic Chart Patterns (4)
TRIANGLE CHART PATTERNS (6)
There are six patterns that fall into triangle patterns. Half of these patterns are their inverted counterparts.
Ascending Triangle
This is a bullish indicator and indicates the continuation of an upward trend. The ascending triangle is a very common pattern seen in bullish markets.
