Which price action candlestick patterns are considered reliable indicators of bullish or bearish trends in cryptocurrencies?

3 answers

• Nov 26, 2021 · 3 years ago
  One of the most reliable candlestick patterns for identifying bullish trends in cryptocurrencies is the 'bullish engulfing' pattern. This pattern occurs when a small bearish candle is followed by a larger bullish candle that completely engulfs the previous candle. It indicates a shift in momentum and suggests that buyers have taken control. Another reliable pattern is the 'hammer' pattern, which has a small body and a long lower shadow. It shows that sellers were initially in control but were overwhelmed by buyers, indicating a potential reversal. These patterns can be used in conjunction with other technical indicators to confirm bullish trends.
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• Nov 26, 2021 · 3 years ago
  When it comes to bearish trends in cryptocurrencies, the 'bearish engulfing' pattern is a reliable indicator. It is the opposite of the bullish engulfing pattern, where a small bullish candle is followed by a larger bearish candle that engulfs the previous candle. This pattern suggests a shift in momentum and indicates that sellers have taken control. Another bearish pattern is the 'shooting star', which has a small body and a long upper shadow. It shows that buyers were initially in control but were overwhelmed by sellers, signaling a potential reversal. Traders often use these patterns in combination with other technical analysis tools to confirm bearish trends.
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• Nov 26, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, considers several candlestick patterns as reliable indicators of bullish or bearish trends. These patterns include the 'bullish engulfing' pattern, 'hammer' pattern, 'bearish engulfing' pattern, and 'shooting star' pattern. Traders at BYDFi use these patterns to identify potential trend reversals and make informed trading decisions. It is important to note that candlestick patterns should not be used in isolation but in conjunction with other technical analysis tools for more accurate predictions.
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