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What is a pattern in trading?

Patterns are the distinctive formations created by the movements of security prices on a chart and are the foundation of technical analysis. A pattern is identified by a line connecting common price points, such as closing prices or highs or lows, during a specific period.

How can chart patterns help you become a better trader?

In summary, mastering the art of chart patterns can help you become a better trader and understand how financial markets work.

What are the different types of chart trading patterns?

As we mentioned, there are different types of chart trading patterns. Those can firstly be categorized as bullish and bearish. Bullish chart patterns indicate that the downtrend is likely to be over, and a new bullish trend is about to begin.

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Risk warning: Digital asset trading is an emerging industry with bright prospects, but it also comes with huge risks as it is a new market. The risk is especially high in leveraged trading since leverage magnifies profits and amplifies risks at the same time. Please make sure you have a thorough understanding of the industry, the leveraged trading models, and the rules of trading before opening a position. Additionally, we strongly recommend that you identify your risk tolerance and only accept the risks you are willing to take. All trading involves risks, so you must be cautious when entering the market.

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