What are the most common chart patterns to avoid when trading options with cryptocurrencies?
» Chart Analysis- Double tops and double bottoms often lead to false breakouts, making them risky for options trading.
- Head and shoulders patterns are notorious for high failure rates in the volatile crypto markets.
- The wedge pattern can result in unpredictable breakouts, complicating options trading strategies.
Got burned a couple times trading options with crypto, you know? Tried to use chart patterns to predict price movements, thinking I was the next Warren Buffet or something. But instead, I just watched my money go down the drain. So, been wondering, what are the most common chart patterns you guys steer clear from when you're trading options with cryptocurrencies? Any advice would be much appreciated. Thanks!
Yeah, feels like those sharp downward spikes, often called "knives," can be a real trap. Jumping in thinking it can't go lower, and then it does. Learned my lesson there. What about ascending triangles, though? They tend to break upwards but can be shaky with crypto volatility. Anyone else noticed this or is it just me?
Definitely see where you're coming from with the ascending triangles. But what's your take on head and shoulders patterns? Sometimes they signal a reversal, but in crypto, it seems like a flip of a coin. Thoughts on that in the context of crypto options?
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