Most investors who are keen on cryptocurrencies try to take positions according to the opinions of technical analysis experts because they are not knowledgeable in technical analysis. Sometimes it causes the right investment and sometimes the wrong investment.

So what do we need to do to make minimum mistakes… ?

What we need to do is to confirm the accuracy of what technical analysts say. It is simply necessary to know the patterns of technical analysis. I'm going to tell you how to simply read a price chart without being a technical analyst...

In this article, I'm going to talk about a number of technical analysis formats...
Fear not, there are no technical terms, it will be in the way a casual investor will understand...

If you're ready, let's start …

Our first technical analysis pattern; Cup and Handle …

Cup and Handle pattern; It is a model that gives investors an idea about the next movement of the cryptocurrency price. It is observed that first one bowl and another small bowl in 1/3 scale of the first bowl are formed. Due to its structure, the first bowl is likened to a cup and the second to a handle.

It is used in price analysis in the medium and long term. 4-hour and one-day price chart is used.

After the completion of the pattern, traders expect a rise as much as the depth of the cup based on the price at which the handle pattern ends.

The formation of the cup part may take 1-6 months, the handle 1-4 weeks. While the first bowl is formed, it is expected that the trading volume will decrease along with the price and the trading volume will increase rapidly towards the end of the handle.

Generally, this pattern is thought to offer a buying opportunity in a bull market. Cup and Handle pattern was first explained in the book "How to Make Money in Stocks", written by American technician William J. O'Neil in 1988.

O'Neil; the reason why this pattern is seen is that investors who have bought at similar levels before cause selling pressure. Consolidation is achieved with price increase following the ongoing selling pressure in the medium term.

My last words; Shortly before the start of the bull rally, bullish signals began to appear in various formations in many cryptocurrencies. During this time, I will try to explain the important formations to you simply.

I hope now, after reading my article, you have learned about Cup and Handle pattern.

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