We admit, we feel a somewhat fintech motherly pride over Bennett Stein, the impressive young college student who reached out to us several months ago to inquire if we would be interested in publishing links to his videos on digital currency trading. On top of being poised, confident and very polite (which we love), he is also a darned good writer and produces some decent videos on the topic of bitcoin trading. So, we’ll turn the forum over to Bennett, and if you still have not started trading digital currencies, Bennett can guide you through.
By Bennett Stein – This series showcases 4 very common cryptocurrency chart patterns that can become highly probable setups for establishing a bullish/bearish bias in the market. This series not only references the technical analysis nature of chart patterns – but also the mass market psychology behind why these patterns form time and time again and the volume trends that represent this mass psychology.
The chart patterns that are analyzed are Symmetrical Triangles, Double Tops/Bottoms, Wedges and Head and Shoulders patterns. Patterns such as the Symmetrical Triangle are quite common and occur due to the convergence of supply and demand after a sharp rise/decline price. On the other hand, the Head and Shoulder’s Pattern was rated by famous chartist Thomas Bulkowski as having the best performance rank among all chart patterns that he studied (highest % of reversal in price). All in all, chart patterns are an important technical analysis tool that with the correct know-how: can be spotted and incorporated into one’s analysis immediately.