How to Read Different Types of Bitcoin Chart Patterns for Beginner Traders
Continuation BTCUSD Trading Patterns
Continuation BTCUSD Trading Patterns
Pennant bitcoin pattern is a continuation bitcoin pattern that looks like a symmetrical triangle in shape and is drawn using support and resistance lines.
Pennant chart pattern occur during a bitcoin trend - either upward bitcoin trend or downwards bitcoin trend. These pennant chart patterns signal consolidation periods of the bitcoin price.
Bullish pennant bitcoin trading pattern - occurs during an upward bitcoin trend direction and this bullish pennant bitcoin chart pattern shows that bitcoin price has the potential to move upwards and continue in the overall upward bitcoin trend direction.
Bearish pennant bitcoin trading chart pattern - occurs during a downward bitcoin trend direction and this bearish pennant bitcoin chart pattern shows that bitcoin price has the potential to move downwards and continue in the overall downward bitcoin trend direction.
Continuation BTCUSD Trading Patterns
Bitcoin wedge chart patterns are continuation bitcoin trading patterns.
Bullish wedge bitcoin chart pattern - Rising Wedge, Ascending Wedge, Ascending Triangle is a bullish continuation bitcoin chart pattern that signals bitcoin prices are likely to continue moving upwards once bitcoin prices move above this rising wedge bitcoin chart pattern - ascending wedge bitcoin trading chart pattern.
Bearish wedge bitcoin chart pattern - Falling Wedge, Descending Wedge, Descending Triangle is a bearish continuation bitcoin chart pattern that signals bitcoin prices are likely to continue moving downwards once bitcoin prices move below this falling wedge bitcoin chart pattern - descending wedge bitcoin trading pattern.
Continuation BTCUSD Chart Patterns
Rectangle bitcoin chart pattern is a bitcoin trend continuation pattern & this pattern has horizontal support & resistance areas.
Bullish rectangle bitcoin pattern - When a rectangle bitcoin chart pattern forms during a bitcoin upward trend it signals an upward bitcoin trend move is likely to follow next once bitcoin price breakout of this bitcoin triangle chart pattern.
Bearish rectangle bitcoin pattern - When a rectangle bitcoin chart pattern forms during a bitcoin downward trend it signals a downward bitcoin trend move is likely to follow next once bitcoin price breakout of this bitcoin triangle chart pattern.
Reversal Bitcoin Chart Patterns
Double Top BTCUSD Trading Chart Pattern
Double tops bitcoin chart pattern is a reversal bitcoin pattern that forms after a bitcoin uptrend & this bitcoin pattern forms two tops at approximately the same level.
Bearish Reversal Bitcoin Signal - Double tops bitcoin chart pattern is a bearish reversal bitcoin trading signal.
Double Bottom BTCUSD Trading Chart Pattern
Double bottom bitcoin chart pattern is a reversal bitcoin pattern that forms after a bitcoin downtrend & this bitcoin pattern forms two bottoms at approximately the same level.
Bullish Reversal Bitcoin Signal - Double bottoms bitcoin chart pattern is a bullish reversal bitcoin trading signal.
Head & Shoulders Bitcoin Trading Chart Pattern
Head & Shoulders chart pattern is a reversal bitcoin pattern which forms at the tops of an upwards bitcoin trend. Head and Shoulders chart pattern is a bearish reversal bitcoin pattern that forms after a bitcoin upward trend.
There's an initial peak which is the first shoulder then a slight dip in bitcoin price, then a second higher peak which is the head then another bitcoin price dip followed by the last peak in bitcoin price which is the second shoulder.
The lowest points between the two bitcoin price lows forms the neckline & the reversal bitcoin signal from this head & shoulders pattern is confirmed once bitcoin price moves below this neckline.
Reverse Head and Shoulders BTCUSD Trading Chart Pattern
Reverse Head & Shoulders chart pattern is a reversal bitcoin pattern that forms at the bottom of a downward bitcoin trend. Reverse Head and Shoulders chart pattern is a bullish reversal bitcoin pattern that forms after a bitcoin trading downwards trading trend.
There's an initial dip which is the first inverse shoulder then a slight peak in the bitcoin price, then a second lower dip which is the reverse head then another bitcoin price peak followed by the last bitcoin price dip in bitcoin price which is the second inverse shoulder.
The highest points between the two bitcoin price peaks forms the neckline & the reversal bitcoin signal from this reverse head & shoulders pattern is confirmed once bitcoin price moves above this neckline.
Consolidation Bitcoin Trading Patterns
Consolidation bitcoin Chart patterns are also known as symmetric triangles - the consolidation pattern looks like a symmetrical triangle.
Symmetrical triangle bitcoin chart pattern signal a consolidation in the bitcoin price & a bitcoin price breakout is likely to happen on either side once the bitcoin price breaks out of this consolidation triangle bitcoin trading chart pattern.
Bitcoin traders will wait for the bitcoin price to break out in one direction before opening a bitcoin trade in direction of the bitcoin price breakout.
Summary:
Continuation Bitcoin Chart Patterns: Pennants - bullish pennant and bearish pennant, Wedges - Ascending wedge and descending wedges and Rectangles
Reversal Bitcoin Chart Patterns: Double Tops, Double Bottoms, Head and Shoulders, Reverse Head and Shoulders
Consolidation BTCUSD Trading Patterns: Symmetrical Triangles
How to Read Different Types of Bitcoin Chart Patterns for Beginner Traders
