Chart analysis is an important tool in predicting the price of digital currency. Here are ten technical analysis models that may help you understand price movement and predict its trends:
1. Ascending and Descending Channels: This model shows the price trend within a specific price channel, as the price tends to rise in ascending channels and decrease in descending channels.
2. Head and Shoulders pattern: It indicates a change in trend, as this pattern appears when an intermediate peak (head) forms between two higher peaks (shoulders).
3. Triangles: Triangles include patterns such as the ascending and descending triangle and the symmetrical triangle, and the price breaking the boundaries of the triangle usually indicates a new trend.
4. Pennant Flag Pattern: This pattern is formed after a strong price movement, and the trading volume appears to multiply with the continuation of the trend, and when the price breaks the borders of the flag, it tends to continue the previous trend.
5. Flag pattern: It is very similar to the trending flag pattern, but it is characterized by sloping horizontal support and resistance lines, and the price breaking the flag usually indicates a continuation of the previous trend.
6. Wedge pattern: A wedge is formed when a support line and a resistance line intersect in a direction heading toward expansion, and the price breaking one of the wedge’s borders indicates a new trend.
7. Symmetrical Triangle pattern: It is characterized by a doubling of trading volume and the intersection of support and resistance lines at an equal angle, and the price breaking one of the flag borders indicates a new trend.
8. Falling Wedge Pattern: This pattern is formed when the price is moving downward in a decreasing range, and the price breaking the flag indicates a trend reversal.
9. Rising Wedge Pattern: In contrast to the falling flag, the rising flag is formed when the price is moving upward in a decreasing range, and the price breaking the flag indicates a trend reversal.
10. Flag Pattern: This pattern is formed after a strong movement in the primary trend. The pattern is a temporary decline in the price, and the price breaking the flag usually indicates a continuation of the previous trend.
Remember that relying solely on analytical models to predict prices may not be enough, and it should be part of your trading strategy and supported by other analyzes such as fundamental analysis and risk management.
