Most Reliable Chart Patterns For Bitcoin Price Prediction

I’ve analysed bitcoin price data on the daily time frame going back to August 2011, and identified more than 7,000 chart patterns. I then checked to see if they reached their target or triggered a stop loss to calculate the reliability percentage for each.

Here are my findings of the most reliable (above 50% chance of winning) chart patterns for use with the bitcoin chart:

  • Big W – 100%
  • Broadening wedge, ascending – 100%
  • Dead cat bounce – 100%
  • Double bottom, Adam & Adam – 100%
  • Double top, Eve & Adam – 100%
  • Hook reversal, uptrend – 100%
  • Horn bottom, 100%
  • Key reversal, downtrend – 100%
  • One day reversal, top – 100%
  • Rising wedge – 100%
  • Spike up – 100%
  • Three rising valleys – 100%
  • Pipe top – 90.9%
  • Fakey, bullish – 86.4%
  • Pivot point reversal, uptrend – 84.6%
  • Closing price reversal, uptrend – 85.1%
  • High & tight flag – 83.3%
  • Inside day – 82.9%
  • Pivot point reversal, downtrend – 80%
  • Shark32 – 79.5%
  • Closing price reversal, downtrend – 79%
  • Pipe bottom – 78.1%
  • Three LR, inverted – 78%
  • Three LR – 76.9%
  • Narrow range 4 – 76.7%
  • Three bar – 75.9%
  • Narrow range 7 – 69.4%
  • Double top – 66.7%
  • Spike down – 66.7%
  • Fakey, bearish – 62.5%
  • Hook reversal, downtrend – 59.1%
  • One day reversal, bottom – 56.5%

The patterns that were identified as being the least reliable (50% or less chance of winning) for bitcoin price prediction are:

  • Double top, Adam & Adam – 0%
  • Head and shoulders top – 0%
  • Three falling peaks – 22.2%
  • Ugly double top – 33%
  • Wide ranging day, downside reversal – 44.4%
  • Wide ranging day, upside reversal – 50%
  • Ugly double bottom – 50%

So to conclude, the chart patterns that work best on stocks and forex do not necessarily work best on bitcoin.

Subscribe to my YouTube channel and look out for my tips on how to identify and trade these patterns on the bitcoin chart successfully.

About James Winsoar 112 Articles
James Winsoar has been marketing online since 1999 when he launched what was then the world's first commercial mobile phone ringtone company. He has since created several internet marketing software programs and courses. He now teaches people how to make more money in less time by leveraging the power of the Internet.

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