Not only do we see the Mac D indicator getting ready to have a bearish cross, but we also see that the RSI has yet to come down to touch its bottom on the RSI. ADA seems to be in the perfect representation of a head and shoulders pattern. With BTC looking weak, I don't expect ADA to go flying anytime soon. #SHORT
Head and shoulders is at the top of a bullish impulse not after a correction
Kousei-Mike
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@ryno87, I understand, but that is why this is a four hour chart. On the four hour chart, there was a bullish impulse from 2.30 to 2.80. The neckline is also very clear as well as the head and shoulders pattern it follows. Whether you agree or not, we can both admit that BTC does not look strong.
Hamidd1986
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Cannot agree with you on your analysis.
We'll see.
Kousei-Mike
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@Hamidd1986, Indeed my friend. We will see. I am open to any analysis/suggestions because of course, we all make mistakes sometimes. However, BTC looks very weak and I think that ADA is also showing a lot of weakness. Only time will tell.
Kousei-Mike
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@Hamidd1986, You see. Within a smaller timeframe it is still a validated head and shoulders chart pattern.
kstein32
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Can you explain to me what your saying? Explain it to me like your talking to an 8 no 2 year old. Lol. I think what your saying is the h&s wouldn't come after it comes down in price. It would only be probable if the h&s came while it was going up. Correct?
Kousei-Mike
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@kstein32, Ahaha. Right, so basically a bearish cross on the MAC D (the bottom of the chart) where the blue line goes under the orange line is about to happen, indicating a bearish signal. There was a spike in the price from 2.30 to 2.80, which leads me to believe that since ADA did not break 2.60, it formed another shoulder and is now sitting on its neckline. The neckline is very very clear as well as the two shoulders within the pattern. Head and shoulder patterns typically form in long-term bullish trends, and since this is a 4 hour chart, the trend does not necessarily have to be extended or long-term. The price action for the head and shoulders formation is technically long-term within a 4 hour chart.