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I've noticed that many beginners in crypto trading focus only on indicators but overlook the most important thing – price patterns. Honestly, this is a big mistake because trading patterns reveal the market's actual behavior much more accurately than a bunch of oscillators.
Here's what I personally use. Double tops and double bottoms are my reliable tools for catching reversals. When you see a double top, it often indicates that the bulls are exhausted, and the price may fall. Conversely, a double bottom signals support and a possible rise. Of course, this isn't a guarantee, but combined with volume, it works very reliably.
Then there's the classic head and shoulders – a pattern that literally screams trend reversal. If it forms after an upward move, expect a high probability of a price decline. I've caught some good shorts exactly based on this pattern.
And flags and pennants are about continuation. These trading patterns show that the market is taking a breather before continuing in the main direction. Temporary consolidation, and that's it. If you skillfully use these formations, you can make good profits from trend continuation.
The most important thing I've realized over years of trading is that patterns only work when confirmed by volume and supporting signals. Don't rely on a single pattern; look for confirmation. Check volumes, observe support and resistance levels, and only then open a position.
What patterns do you use most often in your trading? I'd love to hear about your experience – maybe I'm missing something in my strategy.