Crypto trading trends are common changes in how a cryptocurrency's price appears to trend. On a trading chart, these trends can be seen and should be the foundation of every cryptocurrency trading strategy.
This article will go over, the top five trends that you should be conscious of.
#1) Head and Shoulders
The head and shoulders chart pattern is characterized by three peaks: one large peak in the center and two smaller peaks on each side. The pattern denotes a market reversal and can thus be used to predict when a bullish trend is coming to an end.
#2) Cup and Handle
On a trading chart, look for a bowl shape accompanied by a smaller one that resembles a handle to identify a cup and handle pattern.
The cup and handle pattern is a bullish signal that is typically used by traders to decide whether or not to buy a cryptocurrency. This is because the pattern suggests that a bearish to bullish trend is reversing, hence the cup.
#3) Flag
The flag is another crypto trading trend to keep an eye out for. This is a bullish pattern that can be identified on a map by a rectangular shape pointing downwards with the rightmost border missing, as well as a flagpole.
#4) Higher Highs, Lower Lows
The pattern of Higher Highs and Lower Lows is especially useful for determining whether a cryptocurrency is in an uptrend or a downtrend.
An uptrend is described as a cryptocurrency that is consistently hitting higher and higher price targets. If, on the other hand, a cryptocurrency repeatedly hits lower and lower price targets, it could be in a downtrend
#5) Wedge
On a chart, look for two parallel lines that are converging over time to form a wedge pattern.
When looking for a price reversal, a wedge is commonly used. If the price of a cryptocurrency is trending upwards in a wedge, for example, the price can reverse into a downtrend.
Conclusion
To summarize, every investor or trader's toolkit should include the ability to recognize simple crypto trading trends. Traders may use patterns to decide whether a market is in an uptrend or downtrend, as well as when a price reversal is likely to occur.
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However, crypto asset investing, trading, staking can be considered a high-risk activity. Please use your extreme judgement when making the decision to invest in, sell, or to stake Crypto Assets.