Thanks to the advancement in technology and easy access to the internet and the computer, today it is easy for everyone to get access to the technical charts. You do not need huge computers in your room or sophisticated software to get access to the technical charts. It is easy available even on your smartphone.
Technical charts are not just about lines and charts. It basically is a complete representation of the human behavior and this is what drives the market in the first place.
What you see on your technical chart is the collective behavior of humans who are participating in the particular stock or security. This lets you empower and learn the market.
What you see in the technical chart is much more than price patterns. The technical charts are more than the price patterns. It is more about the human behaviors.
Price patterns are basically nothing but a representation of the human behavior. A continuation pattern is the one that continues in the dominant trend after a pause .The continuation patterns are formed because the investors think that that there is still a lot of potential left in the stock to go on with the major trend that it was following. A continuation pattern is seen as a consolidation phase where the traders are accumulating more and more of the same security.
Reversal patterns are those are formed when the trend is about to reverse. The reversal pattern will be seen at the time of a peak. These reversal patterns are formed when the sentiments in the market are changing. The investors feel that the fundamentals are not very strong to make the market move in the current trend. And this is what is creating a reversal pattern which is basically an indication that the current trend is ending.
You would see some consolidation at the reversal pattern and this indication distribution. This shows that the investors are offloading the shares in the case of a bullish market which means that it is time to start selling.
Whenever you look at the reversal pattern on Bitcoin Trader take care to see the level at which this happens. If you see the reversal pattern getting formed in the resistance level then this is an indication that the pattern is right and there is chance that the market will turn bearish.
Similarly if you see a reversal pattern in the area of demand then this indicates that the market may be ending its bearish move and it is time for it to turn bullish.