In technical analysis, a golden cross and a death cross are exact opposites. They are recognised using a pair of moving averages and indicate either a bullish trend or bearish trend going forward. To fully understand how to recognise and trade a golden cross or a...
In trading, a relative strength index (RSI) is a valuable technical analysis tool which is commonly used to find “overbought” and “oversold” situations in a market. The RSI is displayed as an oscillator below the candlestick chart so to understand what the RSI is...
Three White Soldiers is a candlestick pattern which suggests a bullish reversal to a previous downtrend. It’s important to note the size of the candle bodies and length of the wicks to determine whether there is a risk of retracement. Furthermore, a three white...
Moving Average Convergence Divergence (or MACD) is a trend-following technical analysis indicator which is used to visualise the difference between two moving averages on the price of an asset. This indicator is particularly useful for cryptocurrency trading as it...
A moving average on a trading chart is an indicator which can help reveal patterns in a market which wouldn’t otherwise be visible with a candlestick chart alone. Using the correct moving average can reveal other signals such as head and shoulders or cup and handle...
Double top and double bottom patterns in crypto trading can be used to explain why an asset’s value is moving in a certain way and help to predict what might happen next. These signals occur over longer periods so it’s important to correctly identify them to avoid...
During a downward trend in the cryptocurrency markets, traders are always looking for a way to determine the bottom to enter a long position. Similarly, in an upward trend, it’s useful to be able to predict when the market has reached its top to close any open trades....
Some of the simplest technical analysis patterns to recognise in cryptocurrency trading are engulfing candles and harami candles. Both signals are formed by only two candles and are expected to signify a price reversal. There are bullish and bearish variants of both....
In crypto trading, two technical analysis patterns which are often confused are symmetrical triangles and pennants. In this article, we are going to explain what to look for, what to expect when one is recognised and the difference between the two. To fully understand...
A head and shoulders formation is a technical analysis pattern which signals a market reversal from bullish to bearish. It is considered among the most reliable signals in crypto trading. In this article, we are going to assume that you already know and understand how...
In crypto trading, we sometimes talk about “Consolidation” which, in basic terms, is when the price of an asset (let’s say Bitcoin, for example) bounces between 2 well defined levels. This pattern suggests a period of market indecisiveness which ends when the...
A cup and handle is a bullish pattern which can appear on a candlestick chart. The formation of a cup and handle can vary in duration but is typically anywhere between 7 weeks and 50 weeks. To explain how to recognise a cup and handle and how to trade one, we’re going...