Trading patterns

Following a consistent trading pattern can significantly improve your daily trading results, even allowing you to aim for a $50 daily profit. Here's a closer look at some of the key bullish and bearish patterns highlighted in the chart, making it easy for beginners to understand and apply them on Binance.

1. Ascending Triangle (Bullish Continuation): This is a bullish pattern that typically appears in an upward trend. The price consolidates with higher lows, indicating increasing buying pressure. Entry is above the breakout point with the stop loss (SL) placed below the most recent low. Target profit (TP) is set according to the expected breakout range.

2. Descending Triangle (Bearish Continuation): A bearish continuation pattern, signaling that sellers are in control. As the price makes lower highs and converges on a support line, it’s likely to break downward. Entry is just below the support line, with a stop loss above the last high. The target is based on the height of the triangle.

3. Double Bottom (Bullish Reversal): This bullish reversal pattern occurs when the price hits a support level twice, showing that buyers are stepping in. Entry is above the neckline, with a stop loss below the second low. The target is set by measuring the distance from the support to the neckline.

4. Double Top (Bearish Reversal): This signals a bearish reversal, where the price touches resistance twice before falling. The entry is below the neckline, with a stop loss above the second top. The target is the difference between the resistance and the neckline.

5. Bullish Wedge (Bullish Continuation): A bullish wedge shows that even though the price is consolidating, buyers are gradually taking over. Enter after the breakout, with your stop loss placed at the bottom of the wedge. Set a target based on the height of the wedge.

6. Bearish Wedge (Bearish Continuation): This wedge pattern shows a gradual decline before a strong bearish breakout. Enter below the wedge with a stop loss at the top and set the target based on the wedge height.

7. Triple Bottom (Bullish Reversal): A powerful bullish reversal signal where the price touches a support zone three times. Entry is after the neckline breakout, with a stop loss below the last bottom. The target is set by measuring the height from the support to the neckline.

8. Triple Top (Bearish Reversal): This pattern suggests a trend reversal after hitting resistance three times. Enter below the neckline, with a stop loss above the third top. The target is the distance from the tops to the neckline.

9. Bullish Flag (Bullish Continuation): In an upward trend, this pattern indicates that the market is taking a pause before moving higher. Enter after the breakout with a stop loss at the bottom of the flag and set a target that is equal to the size of the previous move.

10. Bearish Flag (Bearish Continuation): A bearish continuation pattern, this indicates a pause before the price moves lower. Enter below the flag, with a stop loss at the top of the flag, and set a target equal to the previous drop.

11. Inverted Head & Shoulders (Bullish Reversal): A classic bullish reversal pattern. The price makes three lows, with the middle one being the lowest. Enter above the neckline with a stop loss below the right shoulder and set your target based on the distance between the head and the neckline.

12. Head & Shoulders (Bearish Reversal): A strong bearish reversal pattern, this occurs when the price forms three peaks, with the middle one being the highest. Enter below the neckline, with a stop loss above the right shoulder. The target is the height of the head.

13. Bullish Symmetrical Triangle (Bullish Continuation): This triangle shows consolidation within an upward trend. Enter after the breakout, with a stop loss below the recent low and set a target based on the triangle’s height.

14. Bearish Symmetrical Triangle (Bearish Continuation): This pattern shows a consolidation before a bearish breakout. Enter below the triangle, with a stop loss above the recent high. The target is the height of the triangle.

15. Falling Wedge (Bullish Reversal): A falling wedge indicates that sellers are losing control, and buyers will likely take over. Enter after the breakout with a stop loss at the bottom of the wedge. The target is the height of the wedge.

16. Rising Wedge (Bearish Reversal): A rising wedge is a bearish reversal pattern where the price is rising within a narrowing range. Enter below the breakout point with a stop loss at the top of the wedge. Set a target based on the wedge’s height.

By understanding and applying these patterns on Binance, traders can follow the market flow more effectively and improve their trading success, potentially achieving consistent daily profits.