What are the common candlestick patterns to look for when analyzing cryptocurrency charts?

1 answers

• MatiusJSAug 09, 2021 · 4 years ago
  When analyzing cryptocurrency charts, it's important to pay attention to common candlestick patterns that can provide valuable insights into market trends. One such pattern is the 'bullish engulfing' pattern, which occurs when a small bearish candle is followed by a larger bullish candle that completely engulfs the previous candle. This pattern is often seen as a sign of a potential trend reversal from bearish to bullish. Another pattern to look out for is the 'doji' candlestick, which has a small body and represents indecision in the market. It indicates that buyers and sellers are in equilibrium and can signal a potential trend reversal. The 'hammer' and 'shooting star' patterns are also commonly observed. The hammer pattern is a bullish signal that occurs when the price opens significantly lower than the previous close but then rallies to close near the high of the day. On the other hand, the shooting star pattern is a bearish signal that occurs when the price opens significantly higher than the previous close but then sells off to close near the low of the day. By keeping an eye out for these common candlestick patterns, traders can enhance their technical analysis and make more informed decisions in the cryptocurrency market.
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