Trading Guidebook
Ascending Triangle
A bullish continuation pattern characterized by a flat upper resistance line and an ascending lower support line, typically followed by a breakout above resistance.
Bear Flag
A bearish continuation pattern that forms after a strong downward movement ("flagpole"), followed by a short period of consolidation ("flag") with a slight upward or sideways slope. A breakdown of the lower border of the flag signals a continuation of the downward trend. Volume is usually high during the flagpole, decreases during the flag formation, and increases again during the breakout.
Bullish Flag
A continuation pattern that occurs after a strong upward move (flagpole), followed by a consolidation period (flag), and then a breakout to the upside.
Cup and Handle
A cup and handle price pattern on a security's price chart is a technical indicator that resembles a cup with a handle, where the cup is in the shape of a "u" and the handle has a slight downward drift.
Double Bottom
A bullish reversal pattern signaling the end of a downtrend, characterized by two troughs at a similar level followed by a breakout above the resistance level.
Double Top
A reversal pattern signaling the end of an uptrend, characterized by two peaks at a similar level followed by a breakdown below the support level.
Falling Wedge
A bullish reversal pattern that forms in a downtrend. It is characterized by two converging trend lines, both pointing downwards, with the upper line (resistance) having a steeper slope than the lower line (support). Volume usually decreases as the wedge forms. A break of the upper resistance line with increasing volume confirms the pattern and signals the possible start of an uptrend.
Inverse Head and Shoulders
A reversal pattern typically signaling the end of an uptrend. It consists of a left shoulder, a head (higher peak), and a right shoulder (lower peak than the head), with a neckline connecting the lows between these peaks. A break below the neckline confirms the pattern.
Symmetrical Triangle
A consolidation pattern that can be either bullish or bearish (usually a continuation pattern). It is characterized by two converging trend lines: a descending resistance line and an ascending support line. Volume typically decreases as a triangle forms and increases upon breakout. The direction of the breakout (up or down) determines the further price movement. (In this example, a bullish breakout).
Triple Top
A bearish reversal pattern characterized by three consecutive peaks at approximately the same resistance level, separated by two pullbacks to the support level. A breakdown of the support level after the third peak confirms the pattern and signals the possible start of a downtrend. Volume often decreases on the second and third peaks compared to the first, and increases when support is broken.
Altcoin
Any cryptocurrency other than Bitcoin. The term is short for 'alternative coin' and encompasses a wide variety of coins and tokens with different functionalities and purposes.
Cryptocurrency
Cryptocurrency is a digital payment system that doesn't rely on banks to verify transactions. It�s a peer-to-peer system that can enable anyone anywhere to send and receive payments. Instead of being physical money carried around and exchanged in the real world, cryptocurrency payments exist purely as digital entries to an online database describing specific transactions. When you transfer cryptocurrency funds, the transactions are recorded in a public ledger.
Stablecoin
A type of cryptocurrency whose value is pegged to an external reference, such as a fiat currency (e.g., USD), a commodity (e.g., gold), or another cryptocurrency, to reduce volatility.