Flat bottom
This pattern appears when the price of the coin remains horizontal for a continuous time. If you find such a coin graph, draw a trend line on the top of this. Watch this coin with more attention, because when its volume increases, it certainly breaks the trend lines.
Ascending Triangle
This pattern is the most reliable bullish pattern. When this pattern appears, it means a coin is overbought, and the price reverses and falls. Again, traders rushing to this coin and buying this will cause the value to increase. This process iterates multiple times until the coin price breaks through the previous high and reaches an all-time high. But be careful. The breakout is usually accompanied by a significant volume increase.
Parabola
If you want to make a fortune in the crypto world, don’t miss this parabolic SAR pattern. This pattern is always found at the end of a major market rally.
Wedge
A wedge is similar in appearance to a symmetrical triangle. The rising wedges are considered bearish and falling bullish. A rising wedge has a series of higher highs and higher bottoms, and falling has a series of lower highs and lower bottoms. When the wages will form, the volume is always decreasing, and when it diverges, the volume increases.
Channel
Channel is considered a continuation pattern. In this pattern, the trend lines move parallel to each other in the rectangular area. This will indicate that supply and demand are almost balanced. Both have equal strength. The highs and lows are constantly challenged, and coin prices oscillate between two endpoints.
Symmetrical triangle
When symmetrical triangles appear, do not trade because coin prices enter into an area of indecision where the market is stagnant. The pattern indicates that supply and demand forces are equal for this coin. When buyers drive value too high, sellers quickly responded and reducing the price again. Each new lower high and higher bottom is narrower again and again and forms this triangle. When the volume increases, the breakout happens. Experts suggest that this pattern is always reversed in the direction of the trend.
Descending Triangle
This pattern is considered bearish and looks like a variation of a symmetrical triangle. In this pattern, when the top side of the triangle slopes down, it means that the coin value falls to oversold levels. Because of the buyers’ and sellers’ behaviors, the prices of coins go up and down until sellers take control and break the previous low. Moreover, the formation of this pattern is based on decreasing volume.
Flag and Pennant Patterns
This pattern is classified as a continuation pattern, generated when a quick increase occurs in the coin value and always followed by another rise in the same direction. From an expert’s perspective, these patterns are relatively reliable continuation patterns. The bullish flags always have lower highs and lower bottoms, and the slope can draw in the opposite direction. While bearish flags consist of higher highs and higher bottoms and have the tendency to tilt against the trend, and trend line is parallel. The pennant is similar to symmetrical but smaller in volatility and duration. In addition, when volume contracts during stagnation, the breakouts could be possible.
Head and Shoulder
This pattern is considered a reversal pattern and more reliable in an uptrend. These patterns are always generated when the market begins to slow down and supply and demand are generally balanced. Sellers sell out at the high, and buyers push it to a new high. The new high quickly falls back, then rebounds again but fails to break the previous high. Volume is important because the left shoulder forms with rising volume, the head forms with decreasing volume, and the right shoulder forms with less volume. In the last, breakdown occurs.
Inverted Head and Shoulders
This pattern is developed in the downtrend and is notable for its volume aspect. The left shoulder should have more volume compared to the head and right shoulder. When the price rebounds, trading volume increases until a breakout occurs.
Cup handle
This pattern is most suitable when the market has fully corrected. Every coin has its fluctuations. Normally a coin has 2–4 months of violent fluctuations, and during the market adjustment, the coin price falls 20% to 35% from the previous high. When prices start rising again and want to challenge the previous high, sold by those who bought at or near the prior high. The selling pressure declines coin value, and its prices start falling again. The handle appeared to be 5% lower than the previous high. If the coin shows a lower handle, it’s a fraudulent coin and has a higher risk of failure. The best time to buy is when the coin moves to a new high at the top of the handle. But never buy when it touches the previous high 8–12 weeks ago.
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