A compression triangle is the most commonly used pattern. This one is always important. With this pattern you can easily see where the price is going up and down while it is no longer on support or resistance. That's because it's in a compression. That means the swings are getting smaller and smaller. There are 3 types of compressions.the first compression is descending. This means that there is a straight line at the bottom and the swings get shorter and shorter at the top.

A rising compression is that the price tops stay the same at the upside and get shorter and shorter at the bottom. So this is just the opposite.
But the most common compression triangle is actually that it gets narrower at the top and bottom. This is also known as the Bullish Pennant

Are you looking for a rising wedge pattern? Then we have the answer to your question. This pattern can be ascending and descending. There are several parts that are important to be able to use this cartridge properly. In this example, we are going to use a rising price. This pattern goes like this. You have the price going up and the price is never straight. It always fluctuates between support and resistance. As the price rises, the supert and resistance steets get closer to each other. So this is also a compression. It is very similar to the pattern explained above. Because the price rises and becomes compressed, there must be an impulse. Because it happens in an increase, there is a very good chance that the price will shoot down. Why doesn't the price rise to high on a rising wedge pattern? That's because the price is already going up. therefore it can shoot downwards. Again, the longer it stays in compression, the greater the impulse.

A breakout is breaking out of a range. This creates new price action. A breakout can therefore be mocked with a signal from a pattern. Price action is always in blocks with cryptocurrency, forex and stocks. Those blocks are ranges. And if you go up a range you are in the next block. That means the price has gone up. Because traders want to make a profit in the short term, they like to trade the breakout. But how do I trade the breakout? See the image on the left for  an example.

If the resistance is a suport for it is a breakout.
When that signal has come, the best entry is the pullback. This pattern is almost always som back tested. So a breakout pattern is also easy to spot. Because many people play these trades, the price goes up. This breakout can also go down. The same applies to that. But of course you can also place a short trade on it. The price impulse often goes to the next level. So make sure you always keep up with your risk management. When trading you do not want to be far in the loss.

The breakout is very popular and these trades are searched more often than trading in a range. and the chance that this trade will succeed is also quite high. as long as you wait for a back test. There are also fakeouts. That is the same as a breakout pattern but then the impulse is not strong enough and it drops back into the old range and sometimes the price even goes a range lower. That is why the back test on the old resistance is important to complete the construction.

What Is A Head and Shoulders Pattern? It is a reliable pattern that shows an upcoming reveral. The head is the top of the uptrend. If the right shoulder does not rise higher than the left shoulder. That is the swing on the right side of the head then it is a signal that the uptrend has stopped. If the price falls below the neckline and a resistance hits the neckline, it is a definite bear market. There is also an inverted head and shoulder pattern. It's the same but the other way around.A head and shoulders consist of parts. 2 shoulders and a head and a neckline. So together there are 4 parts. These all have their own names.
Left Shoulder: This is the first peak, followed by a decline. This is the left shoulder.
Head: Here the price peaks higher than the first peak, after which it falls again.
Right Shoulder: This is the third peak, followed by a decline.This is the right shoulder
Neckline: This is the bottom line connecting all the bottoms. and makes the head in the middle.

A bull flag is common. This is a signal of a back test. What is a back test? That means if the price makes an impulse, the price always moves back to the high of the previous swing. Entries are often placed there. In many patterns where a breakout is or is forming often has a bull flag. But what is a bull flag?
A bullflag is a bullish pattern. When this pattern is negative it is called the bearish flag. This trading flag allows for hefigr price action. And that's what every trader wants.

To spot a bullflag, you see that the market is uptrend. If the market falls back and takes a few swings and the next high is higher than the lower high, it is a sign that the uptrend is continuing. An example is shown here. It goes like this. uptrend, Higher high lowe low, lower low, lower high and the last one is then a higher high and that is a sign of a bullish trend. If it's a bearish flag, it's just a different sum. If you want to make a trade on this, it is important to cover your stop loss well. See the example of how to do it. If you want to take this trade in the bearish, you can use a short order. Read more about a short order here.

In this pattern, the price is in a range. The bullish rectangle pattern is also in the negative. Then it is called the bearish rectange pattern. So what can I do with the bullish rectangle? You can also take the break out trade here. Once this price breaks out of the range and if the resistance becomes support it is a sign of bullishness. In the bearish rectangle pattern it is therefore the other way around. So the price will go down. The price action is divided into ranges. It jumps from range to range. They are also called blocks. So with this trade you see it jump to another block. Which can ensure that you can play the perfect trade. This signal ensures that you have a good chance of success with your trade. The rectangle is very common because price action always plays in ranges and is unstable. So this is the number 1 trading pattern of 2022. Because it is easy to see and very often used. This can often be clearly seen on a lower time frame. think of 5 minutes, 15 minutes or 4 hours.

A small example is that the price ends up in a box and goes back and forth between the support and resistance where you take a lot of scalp trades. Suddenly there is an outlier. and on the old serictanse the price rises and does not immediately fall back. This is a sign of a bullish rectangle pattern. If you experience this, go down. (bearish) you can also make the same trade with a short. Because thanks to short you can make a profit in a falling market.

A double top pattern is a pattern with 2 tops that are the same height. The name says it all. Because the buds are the same height, this can set a pattern. This pattern occurs on different charts of all digital assets. Because it has double tops, the price does not rise and the construction can tilt. Thanks to the double top pattern you can get the best entry for the perfect trade. This pattern can also go down. Then it is called a double bottom pattern. In this example, we are going to use the bullish of this. When the price rises, there is always resistance. That is called resistance. If the price falls to suport and again comes against resistance and then again against suport. Show it that breaking out didn't work. If the price goes down and then pulls back against the old suport. Is it resistance again? This shows that it is a double top pattern. How do I place a trade on this? In this case you can take a short on the pull back. See the image below. For example, you can place the stop loss above the double top. Because that is a strong area so there is a good chance that your stop loss will be hit on this pattern. But always think of your own risk management and take profit management.

8) Diamond formation pattern

This is a unique pattern. That's because the swings get bigger and then closer again and because of that it often ends up in a compression. You don't see this one often. If you draw the support and resistance lines you will see a diamond. That's why it's called that. It is very difficult to place a trade on this pattern. Of course you can trade in this, but the diamond does not show any clear signals. That is why there is no example of a trade in the image on the right. If you have trading knowledge you know how to deal with this. This diamond pattern is made as follows. higher high, lower low, higher high, lower low, higher high and lower low. Now you see the price break up. Then the same thing happens again, but in one compression, so it goes like this: lower high, higher low, lower high, higher low. And so the price can go on for a long time. If the price continues to move like this, it shows price action on the example below. When you see this pattern you don't see very well where you can take an entry and whether it will become a lonmg and ee short. So the top is the same as the bottom. Because it is difficult to spot a trade, it is difficult. That's why it's not important.