Crypto Chart Patterns & Technical Analysis — Part 4

Patterns Are Tools, Not Magic · The 1-2-3 Trend Change Formation · Classic TA and the Popcorn Strategy · Where to Start

Why can two traders use the very same chart pattern, and one makes money while the other loses? Most of the time it is not the pattern at all. It is whether the market conditions fit.

Part 4 is where we finally pick up the tools — the simple chart patterns behind real trades. And they are simple on purpose. The plain basics of technical analysis carry the most truth.

Here is the warning I want you to keep front and center: none of these methods work all the time. Each one is built to wait for very specific conditions. Use the wrong method in the wrong market and the losses pile up fast.

A pattern on its own is never a signal. In the system I trade, a valid entry needs three things to line up — an EMA crossover, a trendline break, and a break of Point 2 on the 1-2-3 formation. One without the others is just noise.

We start with the 1-2-3 trend change formation, the pattern at the heart of the method. Then we cover the classic TA patterns and the Popcorn Strategy.

One more habit to build now: when you judge an altcoin’s real strength, read it against Bitcoin, not just against the dollar. ALT/BTC tells you whether a coin is truly leading or just drifting up with the tide.

And none of this matters without the risk control rules from Part 3. Patterns without Rule #1 and Rule #2 will hurt you.

Start with the 1-2-3 formation and learn to spot it on a chart.

Begin with the 1-2-3 Trend Change Formation

Trade safe, and keep those losses small. Cheers.

Reading Formations on Charts

As you gain success and start making profits with your trading, it is going to change the way you think and feel about money! Every dollar that comes into your hand will have the potential to remain and to become your worker! Rather than you working for all the money coming in – put your money to work to earn the money you need. Then you can spend your time doing things that you love… helping other people.

I’m going to share exactly how I am trading the markets – you’ll see each of the chart patterns that are the basis of my trading methods.

Each of my methods of trading do not work all the time – each is biased to wait for very specific market conditions. Trading the wrong strategy for the current market conditions will certainly pile up a string of losses.

The Profound Basics

The trading systems I share are my own. They are simple strategies. Simple to explain, simple to understand. And I am always learning more.

The simple basics in technical analysis I have found to provide profound truth. And I encourage everyone to dedicate time to learning and reviewing many different methods of analyzing price chart patterns.

Some of the most important patterns are listed below. The examples to follow, and real time monitoring with our live chat group on Discord will help ensure you will learn how to recognize entry points and exit points, and start to consider how Rule #1 and Rule #2 affect the trade setup and planning.

  • Trend Lines.
  • The 1-2-3 Reversal Pattern
  • Support and Resistance.
  • Moving Averages.
  • Swing Trading vs Trend Trading
  • Using Relative Strength Index (RSI)
  • What is the On Balance Volume Oscillator Indicator?
  • How To Trade With Ichimoku Clouds
  • When To Take Profits or GO SHORT
  • Portfolio Hedging For Medium Size Traders
  • Building A Long Term Position
  • The Popcorn Strategy
  • AI BOT Conspiracy Theory

with a special section on strategies that anticipate AI BOT manipulation of prices

With these key chart patterns in hand, next week we access the BONUS SPREADSHEET of Bull Market Back-Testing to scan recent historical charts and point out examples of each chart pattern!

We will learn about moving averages, and how they can help reduce the number of fakeout breakout false entry signals that often occur.

A trending market will often have a consolidation in prices that appears to be a 1-2-3 reversal patterns – only to find the 1-2-3 bottom is broken and trend continues.

We will review indicators like the Relative Strength Index and the On Balance Volume Oscillator that can provide early warning about the strength of potential bottom formations and top formations before prices break critical trend lines of moving average crossovers.

I’m going to share three main areas of study that may help you in some steps along your path to becoming a successful trader of cryptos and other asset classes.

We will study:

1. technical analysis of the price charts,
2. the process of doing fundamental analysis – and then
3. how inter-market comparisons can help us find the correct timing for a trade.

Formations in the charts and how greed and fear play into it.

I’m going to draw out each of these patterns as an example, and explain different approaches to trade through the life cycle of a classic bull-bear trading pattern.

There is a lot more coming up – so let’s dive into it!