I've noticed that many newcomers to crypto think that technical analysis is only about indicators and oscillators. In reality, it's much more interesting. True trading patterns are what really help understand where the market is headed.

Here are three patterns I constantly use in my trading. Double top and double bottom are classic reversal patterns. When you see two peaks roughly at the same level, it often indicates that the bulls are weakening and a decline may begin. Conversely, a double bottom signals support and a possible price increase. These patterns don't always work, but when confirmed by volume, the likelihood of a reversal significantly increases.

The second pattern is head and shoulders. It's one of the most reliable trend reversal formations I know. It forms like this: an initial rise, then a pullback, then an even higher peak, another pullback, and finally a lower peak. If this pattern appears after an uptrend, prepare for a potential drop. It's a truly powerful signal.

The third important pattern is the flag and pennant. These are continuation patterns, not reversal ones. They show that the market is taking a small pause, consolidating, and then continuing in the direction of the main trend. If you see a flag after a strong rise, the increase is likely to continue.

When working with trading patterns, you can't forget about volume. It's critical. A pattern without confirming signals is just a pretty picture on the chart. Always check if volume is increasing on the breakout, and look for confirmation from other indicators.

How about you? Do you use patterns in your trading or do you rely more on indicators? I’d love to hear which patterns work best for you. Leave a comment, let's discuss.