Trading crypto in the bear market is one of the most difficult times for most traders, including advanced traders, but as the saying goes, the bear market produces the best traders, and millionaires are born. Trading without the proper skills and implementing your strategy (Bullish chart patterns) is akin to exposing yourself to risk, which could cost you your life, but in this case, your trading portfolio.
Having the right mindset, patience, and trading strategies like chart patterns, indicators, and market structures gives you an advantage over large investors and institutions. Most traders and investors seek strategies with the highest profitability and results to maximize their earning potential. When most technical analysis strategies are used correctly, they produce enormous success. Let’s look at how you can use three bullish chart patterns to increase your chances of beating the market and making consistent profits. We’ll also look at how to use these bullish chart patterns as a trading strategy.
Falling Wedge As A Bullish Chart Pattern
The falling wedge is a trend reversal pattern made up of two converging lines, the upper and lower converging line. This chart pattern sometimes occurs in an uptrend indicating a slight consolidation of an uptrend before the price continues in the direction of the uptrend.
The falling wedge pattern is not as common as other patterns. Still, when identified, it is a good strategy for traders to depend on when opening a long position on a successful breakout. How to identify the falling wedge pattern;
- This is followed by a price action that temporarily trades in a downtrend forming swing highs and lows (the lower highs and lower lows);
- They are formed by two trend lines (the upper and lower) that are converging;
- There is a decrease in volume as the channel progresses, with a breakout from the channel with strong volume by the buyers shifting the trend from a downtrend to an uptrend.
Ascending Triangle As A Bullish Chart Pattern
An ascending triangle is a bullish continuation pattern consisting of a rising lower trendline and a flat upper trendline acting as a support. This pattern tells the trader that the buyers are more aggressive in their orders than the sellers, with the formation of higher lows in the triangle followed by a potential breakout from this channel in the direction of the trend.
A breakout and close in the direction of the trend would signal a potential buy for the trader, considering how successful this strategy can be. How to identify this pattern;
- This pattern occurs in an ascending trend, so traders should look for a price rise.
- The market enters a consolidation phase.
- A rising lower trendline appears, indicating a swing high.
- An upper trendline acts as a support for the price.
- Trend continuation with a potential breakout of the upper trendline.
The bullish rectangle chart pattern occurs during an uptrend and indicates that the current trend will continue. The pattern is relatively easier to recognize than other patterns and provides a reliable signal to join a market trend. How to identify this pattern;
- Identify an uptrend followed by a consolidation of the price.
- Draw your support and resistance lines.
- Wait for a breakout and close above the channel to enter a buy order.
Featured Image From NBTC, Charts From Tradingview