If you’re looking to become an avid crypto trader, there’re things you should keep in mind. For instance, it helps to understand how the value of the coins fluctuates and what you should do when that happens. This guide contains ideas that can make you a successful cryptocurrency trader. Here is how to crypto trade with a triangle pattern.
Triangle patterns are among the most common ones in trading, and traders love them because they can offer a good deal of clarity and certainty about where prices will go. It’s like looking at a road sign: it tells you which exit to take and when to get off. In this case, it tells you how much money you’re going to make.
Long-term traders especially favor these patterns. They can help them determine where prices are headed to steer clear of trades that they know will only result in losses. Triangles are good to have when you want to be satisfied with what you have gained after a closed trade.
You should note that cryptocurrencies are unlike traditional currencies, and the way they move is slightly different. Let’s face it: these coins can be easily manipulated by whales (people who have tremendous amounts of crypto) who bully others into selling low or buying high. These whales do this to ensure that their crypto will rise higher than anyone else’s.
To look at it another way, you have to be careful about the crypto triangle patterns that could mislead you. You don’t want to buy low and sell high because someone is manipulating prices. Instead, wait until the price falls so low. Only then can you trade with confidence, knowing that your entries are safe.
Also, you need to ensure that your leverage settings are appropriate. This is vital because traders will risk more than they can afford if the wrong settings are used. You should not end up in a position where you lose everything and only have your fingers left.
Can Beginners use Triangle Patterns?
These patterns can help you improve and become a better trader as long as you learn the ins and outs. You have to understand how they work to use them correctly during your trades.
In short, triangle patterns are good tools for traders who want some certainty about where prices will be going next. They’re especially favored by long-term traders who want to ensure they’re going into the right positions. These patterns can also help you become a better trader if you learn how they work and incorporate them into your trading practices.
What Makes Triangle Patterns Safe?
Many things make triangle patterns safe, and you should understand them before you start trading. Triangles come in different types, and each one can tell you something different about where prices could go. Here are some of these patterns and what they could signify.
Ascending Triangle Pattern
This pattern happens when you have a horizontal resistance line with uptrending support that converges together to form triangle patterns. When it starts to look flatter, the price will go up but not by much. It should be somewhere around 2%. This pattern can signify bullish movement, and you should consider that when trading.
Descending Triangle Pattern
This is contrary to the ascending triangle pattern, and it happens when there’s a lower support line with a downtrending resistance line. Usually, you’ll see this sort of price action during bearish trends. In this case, the price will continue to go down until it hits the support line. When that happens, the price tends to reverse and head higher.
Symmetrical Triangle Pattern
This pattern happens when both sides are sloping downwards, but a point is reached where they meet each other. It could be a difficult battle for the bulls and the bears, but eventually, one of them will prevail. When this happens, the price usually goes to where they meet.
This pattern is slightly different because you’ll see a lot of sideways action with prices moving up and down inside the triangle. Eventually, it breaks out to go beyond what point it hit during the transition phase.
As long as you know these patterns and their implications, you can make the most out of your trading skills. Remember that they’re not 100% accurate, so don’t take any unnecessary risk just because a pattern signals something specific.
Triangle patterns are great tools for traders who know how to use them. If you’re new, take some time to learn more about them before trading with these chart patterns.
Points to Note
When the chart is broken out of the triangle, you can buy it if it touches or tests its resistance. If you’re feeling adventurous, put a stop-loss order at around -1% or -2%. It should be low enough that you won’t lose much money if there’s any false breakout.
Another thing to remember is that a few things can cause triangle patterns to break out. One of them is if you have a gap from the previous times close to where it opens during the next trading session. This happens because traders take advantage of this and buy or sell when they open, causing it to go beyond what you would expect in terms of a breakout.
If you already know how triangle patterns work, the next step is to find good opportunities for your trades. They’re not 100% accurate because there are a lot of factors that can influence price action, but they’re still good tools for traders who want some certainty about what could happen next. We hope the points above help you understand how to crypto trade with triangle patterns.