12.08.2020
Bitcoin price patterns

Bitcoin price patterns: learn to sound cool and maximize your chances

Looking for a new, funky, and not boring way to learn Bitcoin price patterns? Nominex offers a huge array of ways of enabling students of entertrading to have fun and make real money. Thanks to gamification, a passive income strategy, tons of bonuses, and the education program, trading, like New York City hot dogs, is not only satisfying in the end but also in the middle and the beginning. 

Use head and shoulder

You’ll find more articles on other instruments here if you want to approach price patterns studies seriously – but before anything else, we strongly recommend reading about risk management in crypto! 

We’re very enthusiastic about Bitcoin, but before you become a seasoned veterinarian veteran in the crypto army, the first thing to learn is responsible and safe trading. The last thing we want is for you to learn everything there is to learn and then lose the money you worked (or played) so hard for by making a fundamental mistake like not diversifying or picking the wrong exchange or whatever. 

Thanks for reading the warning! Now that the official part is over, let’s get down to learning what a bitcoin price pattern is and what to do with it. 

Bitcoin price charts: technical analysis

Bitcoin price charts

You probably know what Forex is. Trading crypto works in the same way (although there are differences, fundamentally it’s the same principle). If you want to learn more about the basics or in general if you’re going to learn everything there is to know, we thoroughly recommend amazing Paddy Hirsch.

There’s also tons of stuff on Forex in the channel too, and great information on hedge funds and institutional trading which you will probably find interesting. 

Bitcoin chart patterns: telling one apart from another 

How do patterns work? The fundamentals are: the vertical axis is the price. If the line is climbing, good. What you want is to buy cheap and sell expensive. That’s an often repeating scenario that traders use. 

There are more ways to make money. You can make use of the price going down (bullish pattern), on corrections, on lightning-fast scalping techniques, and so on, but for now, what matters is predicting if the price is going up or not. 

My wife and I like playing with candles 

Candles are one of the most popular trading methods. Candlesticks, or candles for short, are ways of representing asset movements including open and closing prices of an asset during a specific period. The period can be set to 1 minute, a day, or more. The candles on the chart will represent the prices and the movement behind them. 

Candle trading method

Using candles you can start analyzing price patterns to see where the price is likely to be going. For more detailed info on candles check out this video. 

Here is a quick look at patterns before we go over examples one by one. 

Price patterns

Bullish Patterns (price going up)

Flag (pennant) 

Strong vertical rally. Strong movement up. Bulls are intensely buying. String asset rise.

Flag (pennant)

Measured move up

Explosive move up follows this pattern that denotes a pause between powerful growth cycles. Looks like two parallel trend lines as the asset is consolidating, getting ready for the next move. Look, like, you guessed it, a flag.

Measured move up

Symmetrical triangle

Indicates the breakout from the upper trendline. Symmetrical lines are aiming towards the center point. 

Symmetrical triangle

Bulkowski’s Ascending Scallops

This erotic trend looks like a letter J. Upward movement starts after a close after the higher high. 

Ascending Scallops

3 Rising Valleys

This trend speaks for itself – look for 3 rising valleys, each above the one before. 

3 Rising Valleys

Cup with Handle

The cup, as you can see, is u-shaped. Buying orders place at the upper part of the handle is advised.

Cup with candle

Ascending triangle

The price breaking at the top of the pattern signals a long trade.

Ascending triangle

Bullish Harami

This bullish reversal pattern features.

Bearish Patterns (price going down)

  • Symmetric triangle.
  • 3 descending peaks.
  • Descending scallop.
  • Descending triangle.
  • Flag.
  • Inverted Cup with handle.
  • Measured move down.
  • Pennant.
Bearish Patterns 1
Bearish Patterns 2

Same as above, but turned upside down.  

Reversal patterns 

Head and shoulders 

This reversal pattern ahs nothing to do with shampooing and everything to do with looking like a person’s head and shoulders. With a little imagination, you can probably see what we’re talking about here although, honestly, it’s a real stretch. 

Double bottoms

This erotic pattern also signals a reversal, although not always, and looks like, ahem, а bottom – or, if you like, two downward triangles.

Diamond bottoms

Tough to spot though it may be, this pattern looks like a diamond tilted to the site.

Two parallel trendlines, price moves up and down. Needs to touch one line at least 34 times and the other 2 with distinct valleys, to count.  

Reversal Patterns

Real Chart Examples 

See if you can guess what these are:

Chart Examples
Chart Examples
Chart Examples

Anything else you want to know about Bitcoin chart patterns? Hit us up on social networks or let our support know how you’re doing. We’re always happy to hear from you. 

Now that you know more about Bitcoin price patterns, there are 2 things left to do. 

One. Remember that projections from past results don’t guarantee results in the future. Patterns don’t provide hardcore guarantees of anything, although they are often indicative of something. 

Two. Try these out in a safe place. Nominex offers demo trading where you can try working with these models and find out their effectiveness without losing money. 

All these patterns come with data about how much of the time they turn out to be right. Be prepared! Trade responsibly. 

Happy Trails! 

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