Crypto Trading- 7 Most Profitable Patterns

The ability to spot Crypto trading patterns as they are forming is a very lucrative skill.

Why Crypto Trading Patterns are important to use ?

If you use them in conjunction with other trading techniques , you can make higher percentage trades than if you didn’t know them.

List of some of the most Profitable trading patterns.

1. Double Bottom

A double bottom pattern occurs when there are two bounces off of the same level of support. Essentially, this pattern occurs after a bearish period and signals a reversal in favour of the bulls.

This pattern is viewed so bullishly because two bounces off the same level confirm that level as support. Meaning the price can increase .

The big move associated with this pattern comes after breaking the “neckline” , shown by the top rectangle zone.

Read More Crypto – What Drives The Value? How It Will Perform 2023 ?

2. The Double Top

A double-top pattern is the opposite of the previously mentioned pattern. It is marked by two rejections off of the same resistance area. This pattern is a bearish reversal pattern, meaning that the price enters this pattern bullish.

Additionally, it leaves this pattern bearish. One reason this pattern occurs is that often at resistance levels, traders will buy in with hopes of a breakout to further levels.

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When this breakout fails to appear , and the price falls, their trade is now in a loss. When the price returns to this same level, traders will often cut their losses. And eventually, sell in the areas where they opened the trade.

Again, pushing the price further down. Typically, this pattern is confirmed after seeing the two rejections and then a neckline break.

3. Head and Shoulders Pattern

The head and shoulders pattern is an infamous trading pattern named after its similarities with a person’s silhouette .

This is a bearish reversal pattern that signifies bearish price action in the near term.

Again it is identified by two lower peaks (the shoulders) and one higher central peak (the head) . Much like the double bottom and double top, the pattern is confirmed by the break of the neckline.

3. Inverse Head and Shoulders Pattern

The inverse head and shoulders pattern is the reverse of the head and shoulders pattern. It is bullish reversal pattern. If it plays out, it also the trend changes from bearish to bullish.

Like the head and shoulder pattern, it is also identified by two shoulders and a head. However, these are flipped, with the heads and shoulders seeming more like two dips with a more significant drop in the middle.

4.Triangle Patterns

Triangle Patterns are pervasive in crypto. Many variations , such as wedges and microphone patterns and more, could be placed into this category .

But for the sake of simplicity , only the basics I am covering here.

Common attributes of all triangle patterns are two intersecting trendlines forming a triangle. One acting as support and one acting as resistance .

There then is a tightening or compression of price as the triangle pattern plays out until the support trend line breaks. (and price breaks down)

Or the resistance trend line breaks (and price breaks out) .This occurs because , like a spring , price tends to get pent up and then explodes in whichever direction breaks.

Read More Crypto Tokens- Why Do Unique Tokens Pump Prior To Unlocking? 2023


The trading patterns in this article occur almost every time frame and as a trader learning their structure is very worthwhile .

This is because the better you get at spotting them , the more likely you can catch them . Forming in real-time and plan your trades accordingly .

Although there are other patterns not mentioned in this article such as the cup and handle . And microphone pattern , channels and more the patterns listed are great first tools in your trader’s toolbox to use to gain insights on the markets.

Final note ……………….

Remember, patterns are best used in conjunction with other indicators to add layers of confirmation to your analysis.

They are a formidable tool to add to your trader’s kit so use them wisely and knuckle down for a hard study. Indeed, charting patterns are generally best used in conjunction with other technical tools.

Such as the Stochastic Oscillator to help judge the momentum of a trend and candlestick analysis to determine an assets current price action.


What is the best pattern for crypto trading ?
Do trading patterns apply to crypto ?
How to read crypto patterns ?
What is the strongest chart pattern ?
Which time chart is best for crypto ?

What is the best pattern for crypto trading ?

Head and Shoulders – The head and shoulders pattern is one of the most reliable reversal patterns in all technical analysis.

The pattern has been observed in crypto markets for years and is a reliable predictor of price movements .

Do trading patterns apply to crypto ?

The channel down and channel up crypto trading patterns are diagonal parallel lines of exchange range. It develops when parallel support and resistance lines are crossed by an uptrend or decline.

It implies either a potential trend reversal or a change in the present trends slope .

How to read Crypto patterns ?

On most crypto charts, a green candle indicates a bullish move. Or an increase in price. Meanwhile a red candle indicates a bearish move or a decrease in price. A candlestick with almost no body and long wicks.

On the other hand, indicates that neither buyers nor sellers are in control.

What is the strongest chart pattern ?

Head and Shoulders is considered to be one of the most reliable chart patterns.

Which time chart is best for crypto ?

Japanese Candlestick Charts

The most popular crypto chart is the Japanese candlestick chart. Each candle on a candlestick chart shows the price movement of the asset during a specific time interval.



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