Financial Technical Analysis Crypto Narrative Chapter 5 Classic Chart Pattern
Almost every traders, investors, and anyone else following crypto in social media and entertainment channels know about classic chart pattern. That is because chart patterns are the easiest to represent, which is the most interesting and entertaining way to share technical analysis to the public. Classic chart patterns also appears in crypto. While many articles probably mentions only 5 to 6 classic chart patterns, this article will mention 20 popular classic chart patterns that are used by intermediate traders.
Reversal classic chart pattern are pattern that reverses the trend where if currently the trend is bullish then the trend will reverse to bearish and vice versa. In many articles, these patterns are not the first on the list but I decided to list them here first because new traders when starting their technical analysis education usually forgets about these patterns. The cause is the default instinct of starting learners where they always draw trend lines whenever trying to spot a chart pattern. The fact is that most these popular reversal patterns are not identified by trend lines but by support and resistance lines. Therefore, engrave these patterns into your head first.
Double and Triple Bottoms
To spot double and triple bottoms, check the support line. Then, check the swings which should look similar to a “W” letter. The price action must once go near the support line, then bounce up and bounce back down. At this point is a potential double bottom and around this time we should enter. Once the price goes up again and surpasses the previous top, then the double bottom is formed. If it breaks far below the support line, then the pattern fails.
Double and Triple Tops
To spot double and triple tops, check the resistance line. Then, check the swings which should look…