#数字货币市场回调 Today, let's talk about two commonly seen Candlestick reversal patterns in practice - penetration and dark-cloud cover. Mastering these can help you seize many turning points.
First, let's talk about the penetrating pattern. It generally appears at the end of a downtrend, with the key feature being that the bullish candlestick engulfs more than half of the previous bearish candlestick's body. At this point, the bulls begin to gain strength, and the market may turn upwards. Conversely, looking at the dark-cloud cover, it often appears in the later stages of an uptrend, where the bearish candlestick retraces more than 50% of the previous bullish candlestick's body, indicating that bearish pressure is increasing, and the price is likely to move downwards.
Identifying the pattern is just the first step; the real key during trading is the setting of stop-loss and take-profit. For example, if a penetration pattern is found and you are ready to go long, the stop-loss can be placed below the recent low, while the take-profit can be flexibly adjusted based on resistance levels. This way, even if the direction is incorrect, the loss remains within a controllable range.
The cryptocurrency market is highly volatile, and no technical indicator is infallible. These patterns are merely auxiliary tools; in practice, they should be considered alongside trading volume and market sentiment. Remember that risk always comes first; don't go all in just because of one or two signals.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
11 Likes
Reward
11
4
Repost
Share
Comment
0/400
SlowLearnerWang
· 16h ago
It's this theory that penetrates the dark clouds again... I believed it the last time I heard it, and as a result, I was trapped tightly.
View OriginalReply0
HodlOrRegret
· 16h ago
The dark-cloud cover is well said, but what I care more about is the compatibility of the Trading Volume; without the volume-price alignment, it's just a pipe dream.
View OriginalReply0
PrivateKeyParanoia
· 17h ago
Here we go again, it sounds nice to talk about stop loss and take profit, but in reality, as soon as you enter the market, you get knocked down.
View OriginalReply0
ChainProspector
· 17h ago
Well said, but I still feel that things like penetration and dark-cloud cover look nice but are actually pitfalls.
To be honest, determining the positions for stop loss and take profit is much more difficult than the pattern itself, and most of the time, you get knocked out by random Fluctuation.
What I fear the most are those "I understand now" newbies who go All in, and after two or three times, they are severely drained.
#数字货币市场回调 Today, let's talk about two commonly seen Candlestick reversal patterns in practice - penetration and dark-cloud cover. Mastering these can help you seize many turning points.
First, let's talk about the penetrating pattern. It generally appears at the end of a downtrend, with the key feature being that the bullish candlestick engulfs more than half of the previous bearish candlestick's body. At this point, the bulls begin to gain strength, and the market may turn upwards. Conversely, looking at the dark-cloud cover, it often appears in the later stages of an uptrend, where the bearish candlestick retraces more than 50% of the previous bullish candlestick's body, indicating that bearish pressure is increasing, and the price is likely to move downwards.
Identifying the pattern is just the first step; the real key during trading is the setting of stop-loss and take-profit. For example, if a penetration pattern is found and you are ready to go long, the stop-loss can be placed below the recent low, while the take-profit can be flexibly adjusted based on resistance levels. This way, even if the direction is incorrect, the loss remains within a controllable range.
The cryptocurrency market is highly volatile, and no technical indicator is infallible. These patterns are merely auxiliary tools; in practice, they should be considered alongside trading volume and market sentiment. Remember that risk always comes first; don't go all in just because of one or two signals.