Greetings friends and readers. Today I will start analyzing graphic patterns according to the classics of graphic analysis by Eric Nyman. If you haven't read it, I highly recommend it...
You can find it on the internet for free...
I don't quite understand those who trade on linear charts like in SberInvestments or Tinkoff... Knowing Japanese candles and candlestick analysis, you will never look at linear charts again... What Japanese candles are and how to use them is well written in Steve Nison's book. For those who are illuminated by Japanese candles...
A bit later we will analyze Binance in the blog and their patterns too... But today I want to show that the simplest and not very often encountered graphic analysis pattern works quite well in the crypto market as well.
Although Nyman probably didn't know about crypto in 2000 when he wrote the book. But his graphic patterns are rather not just drawings for the stock or currency market, but rather the behavior of the crowd expressed in graphic form...
So meet the classics of trading:
Head and Shoulders pattern
It can be both regular and inverted in a bear market.
And this is how it looks in crypto:
And it's clear that it's not quite classical as per the textbook... The manipulations of market makers are still in play, they know all these patterns by heart... and of course, they will always be happy to catch you off guard... But in the end, the market's strength worked out even in double measure...
By the way, there is another Head and Shoulders pattern on this chart... Those who are attentive, please write in the comments....
In this article, I will not tire you with a hundred other examples, the goal was to awaken in you - my readers - a thirst for knowledge and an understanding that the market is not a place for amateurs... Want to make money trading?! You need to Learn, Learn, and Learn again as the Great advised... Well, you know who ))
And for those who don't want to strain too much (but not only for them) and read some theories and smart books, the strategy of moving channels will do just fine... which I described in the previous publication...
And take a closer look at the currency pairs in part 1 and part 2 for those who haven't read...
I wish everyone Profits and patience!