What are crypto chart patterns?

Crypto chart patterns appear when traders are buying and selling at certain levels, and therefore, price oscillates between these levels, creating candlestick patterns. When price finally does break out of the price pattern, it can represent a significant change in sentiment.

How do crypto trading patterns work?

The system automatically identifies 27 common crypto trading patterns and also indicates likely price path going forward (see example chart “Trading patterns” – Breakout). But traders still need to be able to interpret the signals, manage their entry/exit points, stop loss levels, and even select those situations with the best chances of working.

How effective are chart patterns for crypto trading?

There are many different chart patterns that you can use to trade crypto, but not all of them are equally effective. Some chart patterns have a higher success rate than others. For example, the head and shoulders pattern has a success rate of about 70%. On the other hand, the cup and handle pattern has a success rate of about 80%.