Which candle patterns are commonly used by professional cryptocurrency traders?

1 answers

• ShamikkshaJun 18, 2022 · 3 years ago
  At BYDFi, we have observed that professional cryptocurrency traders commonly use candlestick patterns such as the hammer and the shooting star. The hammer pattern is characterized by a small body and a long lower wick, resembling a hammer. It is considered a bullish reversal signal, indicating a potential trend reversal from bearish to bullish. On the other hand, the shooting star pattern has a small body and a long upper wick, resembling a shooting star. It is seen as a bearish reversal signal, suggesting a potential trend reversal from bullish to bearish. These patterns help traders identify key levels of support and resistance, as well as potential entry and exit points for their trades. However, it's important to note that candle patterns should not be used in isolation but in combination with other technical analysis tools and indicators for more accurate trading decisions.
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