So here’s the only chart pattern you’re ever going to need to understand and use.
If you’ve been trading for a while and dabbled in technical analysis, you’ve probably seen all kinds of names thrown around—double bottoms, double tops, triple this, triple that. A thousand names, each making it seem like you need to memorize a secret language to be a good trader. In reality, a lot of that is just retention of nonsense, packaged to sell a course.
The truth is much simpler. You don’t need the names. You just need to understand what price is telling you. Once you know that, you’ve basically got all the patterns covered without ever memorizing “head and shoulders,” “double top,” or any other catchy label.
There are really only two types of patterns: continuation (momentum) and reversal. I focus on continuation—on trends. But to understand trends, you start with reversals. Forget the names. Focus on structure. That’s how you know whether we’re in an uptrend or downtrend, and it works in any market, any timeframe.
Here’s the essence:
An uptrend is simply a higher high followed by a higher low, then another higher high.
A downtrend is a lower high followed by a lower low.
That’s it. Double top, coffee latte, dog’s breakfast—it doesn’t matter what you call it. If you see higher highs and higher lows, you’re in an uptrend. Lower highs and lower lows? Downtrend. Keep it that simple.
Now, let’s look at the market. Right now Bitcoin is sitting at a key level. Old resistance became support, gave us a bounce, then broke down through that support. And when support breaks, it often flips into resistance. That’s where Bitcoin is sitting now. Whether it falls toward 100K or pushes on to all-time highs hinges on this level in the short term.
On the four-hour chart, we’ve technically got a higher low and then a higher high—by definition, that’s an uptrend. But is it strong? No. It’s weak right now, with no real continuation, and I only trade when a trend shows that clean, bouncing-ball predictability.
Ethereum recently gave a clearer example. On both the eight-hour and twelve-hour charts, we saw a higher low break into a higher high, which triggered a strong momentum move. That’s the kind of trend you want to trade—simple structure that builds into powerful moves.
The lesson? Don’t overcomplicate trading with fancy names. Learn to read trends. Build your strategy around cyclicity and momentum. That’s your best shot at doing well.
At the end of the day, everything boils down to this:
Higher high + higher low = uptrend.
Lower high + lower low = downtrend.
Simple as that.
If you want to dive deeper, I put out a free newsletter every Tuesday with tips, or you can check out my YouTube channel, TheGrowMeCo.Com Keep it simple, focus on trends, and you’ll cut through the noise.
Have a great day.
