11 Candlestick Patterns Summarized by Legendary Traders

All Candlestick patterns reflect market psychology, and the market environment determines the effectiveness of Candlesticks.

If the trend is the cornerstone of trading, then support and resistance levels must be verified by Candlestick.

As a qualified trader in the cryptocurrency circle, it is essential to understand these basic concepts.

The following image shows eleven classic Candlestick patterns.

1. Double Bottom/W Bottom:
After testing the bottom of the coin price twice, it reversed upwards, forming a W-shaped bullish pattern.

2. Descending Flag
After a brief consolidation, the coin price continues to decline, resembling a bearish flag pattern.

3. Ascending Triangle
The price of the coin fluctuates between the horizontal resistance line and the ascending support line, ultimately forming a bullish pattern that breaks upward.

4. Head and Shoulders
The price forms a left shoulder, head, and right shoulder before reversing downward, indicating a bearish reversal.

5. Ascending Flag
After a brief consolidation, the coin price continues to rise, resembling a bullish flag pattern.

6. Descending Triangle
The price of the currency is oscillating between the horizontal support line and the descending resistance line, ultimately forming a bearish pattern that breaks downward.

7. Double Bottom/Broken Bottom Reversal
After the price of the currency touches the low point multiple times and breaks through, it forms a bullish reversal pattern.

8. Rising Wedge
The price of the coin is running in a converging ascending channel, which usually indicates a bearish pattern of downward reversal.

9. Rectangular Consolidation
The coin price is consolidating in a horizontal movement between parallel support and resistance, indicating a continuation or reversal.

10. Arc Cup Handle
After the price forms a round bottom and briefly consolidates, it resembles a bullish pattern known as a cup and handle.

11. Expanding Triangle
The price fluctuation range is gradually expanding, forming a divergent triangle, indicating a high volatility reversal or continuation.