1. Doji pattern:
• Description: It appears when the opening and closing price are approximately equal, indicating market indecision between buyers and sellers.
• Interpretation: It indicates a possible reversal of the current trend, especially if it appears after a strong upward or downward movement.
2. Hammer pattern:
• Description: Consists of a small body and a long lower shadow. Usually occurs at the end of a downtrend
• Interpretation: It indicates buying strength and the beginning of a possible upward trend reversal.
3. Shooting Star Pattern:
• Description: Similar to a hammer but appears at the end of an uptrend. It has a small body and a long upper shadow.
• Interpretation: It indicates weak buying and the beginning of a possible trend reversal towards the downside.
4. Head and Shoulders Pattern:
• Description: It consists of three peaks, the middle peak (the head) is higher than the two side peaks (the shoulders).
• Interpretation: It is considered a strong indicator of a trend reversal from bullish to bearish after the pattern is completed.
5. Double Top Pattern:
• Description: Occurs when the price rises to the same level twice but is unable to exceed it.
• Interpretation: It is considered an indicator of weak upward movement and the possibility of starting a downward movement.
6. Double Bottom Pattern:
• Description: Occurs when the price drops to the same level twice but does not drop further.
• Interpretation: It indicates strong support and the possibility of a trend reversal from downward to upward.
7. Bullish Engulfing Pattern:
• Description: Formed when the body of a bullish candle completely engulfs the body of a previous bearish candle.
• Interpretation: It indicates the strength of the purchase and the possibility of a continued rise.
8. Bearish Engulfing Pattern:
• Description: Formed when the body of a bearish candle completely engulfs the body of a previous bullish candle.
• Interpretation: It indicates strong selling and the possibility of a continued decline.
These patterns are analytical tools that can help you predict future price movements based on past market movements.
#solana #Binance #bitcoin #BTC #nft
