🔄 Introduction
Candlestick patterns apply across assets, but altcoins and BTC behave differently due to liquidity, volatility, and trader profile.
This article explores:
- Similarities and differences
- How to adjust your strategy
- What to watch out for in altcoins
⚡ Volatility Differences
- Altcoins generally have higher volatility, causing more false signals
- BTC tends to have more stable, reliable patterns
💧 Liquidity Considerations
- Lower liquidity altcoins can show erratic candle formations
- Beware of “whales” causing misleading price moves
🔄 Strategy Adjustments
- Use higher timeframes for altcoins to avoid noise
- Confirm patterns with volume and other indicators more rigorously
- Adjust stop-loss wider due to volatility
✅ Conclusion
Candlestick strategies work in both, but require more caution and confirmation in altcoins.