Cryptocurrency has taken the world by storm over quite a short period of time and continues to be a subject of question for many investors. There are many skeptics of the currency out there, but many are intrigued by the novelty of such a new idea. With such a new currency, comes some difficulty in deducing information from certain charts. Many continue to ask questions as to whether or not traditional patterns can be applied to this currency, and how to read certain charts. One chart that can be used is the ascending triangle pattern.
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This pattern is something often recognized amongst many charts. This pattern can be extremely beneficial based on what type of trader one is. There are two main schools of thought in the world of trading. The first is those who trade based on fundamental analysis. Fundamental analysis looks at the underlying forces of an economy to determine what the price will be. The other type is technical analysis. This type of analysis depends on market data and historical prices and volumes in the industry. Both are beneficial when determining what to do with information, but they obviously have their own benefits. Looking at the charts can be difficult.
One of the most popular types of charts continues to be the candlestick chart. This type of indicator shows a candle with a different color based on whether or not the price action closed bearish or bullish. This can be extremely helpful when looking at whether or not the price will go up or down. With such a new market on cryptocurrency, most economists are struggling to figure out if traditional forms of chart deduction can be applied to the charts on cryptocurrency. Hopefully over the course of the next couple of years, these charts will be able to be read in a better way.