 As traders, we are always looking for a trading edge, but with the sea of information out there, a lot of your charts, when I see them, they usually end up looking something like this. Unfortunately, there is no magical pale, or in this case, chart pattern or indicator that can magically make everyone a profitable trader. I'm rich. What we must do as traders is try to fit the puzzle pieces together by using historical data, human psychology, and analysis to find the most probable trades. In today's video, I will be going over the best and most reliable chart pattern and the worst and least reliable chart pattern. According to a study by Cody Hein, done in 2020, who tested 10 years worth of historical data and over 200,000 chart patterns. So let's jump right in to today's video. What's up guys? I'm Jay and welcome to Bitcoin Daily. The goal of this channel is to empower you with the knowledge and resources to help you get to that next level. So make sure to subscribe, like, and share this video. So let's start with the worst and least reliable chart pattern. So the only results from these tests that were included were once they were considered to be complete, which usually means a full break of a support resistance area or trend line. So the difference between the best performing and most reliable chart pattern and the worst and least reliable is pretty big. The most reliable chart pattern that we will be discussing hits on a 83% rate, while this one only hits on a 54% rate. In addition to that, this unreliable chart pattern is a very, very commonly used that I see all traders always using and it's pretty much a 50-50 play. So the worst performing and least reliable chart pattern is the pennant. A pennant is basically when there's a strong move in a direction and then consolidation. After the consolidation, there's usually a move in one direction or the other. As you can see two trend lines form, which create a resistance and support. Now there could be a bullish pennant or a bearish pennant depending where that strong initial move comes from. So the initial move is up and then starts the consolidation into that pennant, then that's considered bullish. If it's the other way around, then it's considered bearish. So this is considered basically a continuation pattern. So people are usually looking for a continuation in the same direction as the initial move. However, Heinz study shows that pennants only hit on a 54.87% bullish pennant patterns and 55.19% on bearish pennant patterns. That means that when you see one of these pennants, you have a 50-50 shot of getting the trade in the right direction. Now you have to be careful because bull flags and pennants look pretty much the same. However, one usually forms a sideways channel while the pennant usually forms this symmetrical channel that has lower highs and higher lows. The confusion comes in most textbooks that show bull flags and pennants. They're usually right next to each other. So for example here, you can see a bull flag and you can see a bullish pennant. They look almost identical. So you have to make sure to distinguish the difference between the two. Again here, the flag has a channel while the pennant is forming, well, a pennant. The reason it's important for you to know the difference between the two is because the flag has a better hit rate and is more reliable than the pennant. You can see in the study that bull flags and bear flags hit at about a 67% success rate. Alright, so now that we've covered the worst and least reliable chart pattern, which is the bull and bearish pennant, it is time to talk about the most reliable chart pattern. This chart pattern hits at a 83% success rate. Now before I show you guys the most reliable chart pattern, make sure to smash that subscribe button. If you want to make money either trading through crypto passive income or just want to stay up to date with the latest money making trends in crypto, I upload a video almost every single day about these topics. So please smash that subscribe button so that you never miss another opportunity to make money in crypto again. In addition to that, I try to answer every single DM that I get on Twitter and on YouTube in the comments section. So if you guys have any questions about anything that's covered here, drop it in the comments. I also have a free discord channel for like-minded individuals. So if you guys are interested in that, you can join, link is in the description. So the best and most reliable chart pattern that hits at a 83% success rate is the head and shoulders and inverse head and shoulders patterns. In the study, the head and shoulders pattern hit on a whopping 83% success rate, making it statistically the most accurate price action chart pattern. The head and shoulders pattern is defined by two swing highs which make up the left and right shoulders and a higher high between them which makes up the head. The inverse head and shoulders is of course this just upside down. Now the two shoulders don't have to be at the exact same price, but the closer that they are in price, usually the more accurate that this pattern is. The pattern is complete once the price breaks through the what's considered the neckline of the two lows in the shoulders or the swing highs if it's inverse. As you can see in this example, the support or neckline doesn't have to be exactly horizontal, it could also be sloped to the downside or even the upside. Usually the target in this pattern is after it breaks down from the neckline, the target will be the same distance between the neckline and the head, then you just basically move that here to the breakout and that's what gives you your target. So let's look at a real world example in Bitcoin last year where we had a head and shoulders pattern on the daily chart. Now in these real world case scenarios, they usually look a lot uglier and not as perfect as in the textbooks, but they play out the same. So you can see the left shoulder, the head and the right shoulder, the neckline and what happened when we broke beyond that neckline. If we were looking for a target, we would go from the top of the head to the neckline and then place this at the breakout point. You can see that that would have gave us a price target of around $39,000, but this ended up going all the way down to $29,000. Head and shoulder patterns are usually reversal patterns. So look for them at the peak prices or towards the bottom. That is usually where you will find them. The higher the timeframe, usually the more accurate they are. With all that being said, if you guys are interested to learn more about trading, then I recommend checking out my trading tutorial playlist. Here I've done over 61 videos on different trading topics, including how to calculate your position size properly, how to trade with leverage, and even videos about me trading live and my thought process throughout the entire trade. And if you want to know exactly what trades I'm taking in real time every single day, then you need to join my mentorship program. In this group, I share every single trade that I take with my complete trading plan, entry, stop loss, take profit, all of it. I teach you how to trade the right way using proper risk management and position sizing so that you never have to worry about blowing up your account again. In addition to that, I show you guys exactly how I'm playing the bear market and investing for the long term, how to set up your portfolios, and any other opportunities that I come across. Now, there are limited spots for this because there's so many people that want to get in, but there's only so many that I can work with at once. So if you're interested, go to the link in the description below. I'm telling you guys, crypto is a once in a generation opportunity. The way it is right now, the easy opportunities to make money will not last forever. So please, if you're interested, click on the link in the description below. If not, I strongly suggest that you watch the next two videos that are put up on the screen because those are the videos that YouTube thinks you should watch next. Thank you guys so much for watching. As always, peace and love.