Can Chart Patterns Help with Crypto Trading?



Chart patterns constitute a foundational element of technical analysis, aiding traders in predicting potential future price movements by analysing past patterns. It is utilised in several trading options like crypto and stocks.

Chat patterns are the visual representation of the collective response of the market. Understanding these patterns gives us a peak into mass psychology, giving us better insight and thus better opportunities. Along with research on an organisation’s technological and financial aspects, studying chart patterns to understand the journey of the past and future is an important tool.

Role of Chart Patterns in Crypto Trading

With time, more and more technologies and tokens are coming as the crypto ecosystem evolves and expands. Crypto is a relatively volatile market. This is a realm of rapid risks and opportunities. Understanding the mass sentiments about a token and being able to guess the future plays a key role in the crypto market.

The crypto space is expanding fast and introducing new solutions and applications rapidly. Apart from trading in exchanges, crypto assets are now getting their value through the solutions they provide organically. All these advancements are reflected in the charts and thus it is valuable to understand them.

Read more: Beginner Guide To Crypto Technical Analysis

Common chart patterns in crypto

Following are some important patterns to look at. Along with the patterns, the table also shows the trading signals each pattern is giving.

PatternBuy/Sell/Course reverseChart
Ascending TriangleBuy
Descending TriangleSell
Symmetrical TriangleReverse Course
Rising WedgeSell
Falling WedgeBuy
Bullish RectangleBuy
Bearish RectangleSell
Double TopSell
Double BottomBuy
Bullish FlagBuy
Bearish FlagSell
Bullish PennantBuy
Bearish PennantSell


Reading chart patterns is an important skill to have for traders. Having said that, one should also research different aspects of any token before investing. As tokens are evolving to have innovative solutions and real-world applications, there are several factors affecting their value and price. From project decisions, competitors, technologies used, adoption rate, regulations and global market situations; all should be considered while investing.

Though all these factors are reflected in a chart, reading it does not guarantee the desired outcome. This shows both the limitations and the importance of the patterns. As crypto assets’ values depend largely upon trading and crypto staking, charts certainly give traders important information and signals. Chart patterns let you connect the dots from the past and thus let you guess the future. This visually presents the mass sentiments and that’s how it becomes an important tool for the traders.

Read more: What is a Candlestick Pattern

Please note that the above-mentioned data points are not investment recommendations. Investors are required to conduct their thorough research before investing in any crypto-related asset.

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Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Each investor must do his/her own research or seek independent advice if necessary before initiating any transactions in crypto products and NFTs. The views, thoughts, and opinions expressed in the article belong solely to the author, and not to ZebPay or the author’s employer or other groups or individuals. ZebPay shall not be held liable for any acts or omissions, or losses incurred by the investors. ZebPay has not received any compensation in cash or kind for the above article and the article is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information.

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