Chart Patterns Every Crypto & Stock Trader Needs to Know
3 Basic Patterns — How to spot & when to enter…
When it comes to trading there are a lot of factors external and internal. External such as news, media, social platforms, social sentiment, fundamentals… Whatever title you give it, if it’s not coming from the chart or from on-chain, I consider this external. Internal, as hinted at is anything that you see on the charts.
Now, you could balk and say, well the only reason, the charts show what they show is because of the decisions traders and investors make. Yes, you’re correct but for simplicity, we won’t dive too far into the market psychology of what drives market behavior but rather what has already happened. This means that everything you see on the chart is because of past decisions. We are looking at a history defined by candlesticks.
These candlesticks, one tick at a time, whether on a minute or weekly timeframe clearly show the high, low, and the open & close. As time goes on, patterns begin to form. As in gambling, you can increase your odds through ratios and probabilities. Chart patterns are no different, though companies & projects with richer data and longer history can give higher probabilities, patterns are still patterns.
