Tag: price action
What is the Cup and Handle Pattern?
The Cup and Handle is a structural chart pattern that signals the continuation of an existing trend. It captures a specific market psychology: the transition from a period of high-velocity buying to a slow, rounded correction, followed by a final, tight consolidation before the trend resumes. Traders use this pattern to solve the problem of…
What Does “Bearwhale” Mean in Crypto?
In the context of a live chart, a “bearwhale” is more than just a large holder; it represents a specific type of market participant who uses immense capital to exert downward pressure on price. While a “whale” is simply any entity with a massive supply of an asset, and a “bear” is anyone expecting price…
What are Morning Star and Evening Star Patterns?
Candlestick patterns are visual representations of shifts in market psychology. While most individual candles represent a continuation of current sentiment, specific multi-candle clusters suggest that the dominant force in the market—whether buyers or sellers—is losing its grip. The Morning Star and Evening Star are two of the most recognizable three-candle clusters used to identify these…
