Double Top Crypto Pattern
A double top is one of the most common crypto chart patterns. It is characterized by the price shooting up twice in a short period of time — retesting a new high. If it fails to go back to that level and cross over the upper horizontal line, it typically signifies that a strong pullback is coming. This is a bearish reversal pattern that gives a sell signal.
Double Bottom Crypto Pattern
A double bottom is a chart pattern that, as can be seen from its name, is the opposite of the double top. It occurs when the asset price tests the lower horizontal level twice but then pulls back and goes up instead. A double bottom usually gives a buy signal as it is a sign that there will likely be an uptrend.
Triple
The triple top and bottom patterns are very similar to their “double” counterparts. The triple top also occurs when the price of an asset tests the upper horizontal line but fails to cross over it — but for this pattern, it happens thrice. It is a bearish reversal pattern that signals an upcoming downward trend.
Triple Bottom
The triple bottom crypto chart pattern is observed when asset price reaches a certain level and then pulls back two times before finally kicking off a bullish trend.
Pole Chart Patterns
Pole chart patterns are characterized by the price of an asset reaching a certain level and then pulling back before returning to that level. These patterns get their name from the “pole” present in them — a rapid upward (or downward) price movement.
Bullish Flag Patterns
Bullish Flag Pattern
A bullish flag is a chart pattern that occurs when the asset price reaches a certain level and then pulls back before reclaiming that level. A bullish version of this crypto flag pattern usually gives a buy signal because it is a sign that an uptrend will probably continue.
The most distinctive thing about this pattern is, unsurprisingly, its shape: a pole followed by a flag. Here’s how it’s structured:
Drastic upward price movement
A brief consolidation period with lower highs
A bullish trend
Bearish Flag
A bearish flag is the complete opposite of a bullish flag crypto chart pattern. It is formed by a sharp downtrend and consolidation with higher highs that ends when the price breaks and drops down. These flags are bearish continuation patterns, so they give a sell signal. You can learn more about them in this article.
Bullish Pennant
A bullish pennant is a bullish pole chart pattern rather similar to a bullish flag. It also has a pole — a shart uptrend — followed by a brief (or not so brief) consolidation, and then a continued uptrend. Unlike the flag, however, its consolidation period is shaped like a triangle: it has higher lows and lower highs. It gives a buy signal.
Bearish Pennant
A bearish pennant is, naturally, the opposite of a bullish pendant. Its pole is a sharp downward price movement, and it is followed by a price decrease. It gives a sell signal.
Pennants are also defined by trading volume: it should be exceptionally high during the “pole” and then slowly whittle down during consolidation. They usually last between one and four week.
