In order to complete my previous ideas that provide an H&S pattern: here is an update taking into account the evolution of Bitcoin's price
Note that the height of the head is exactly twice the height of the left shoulder So if my scenario is realized, we should find this height with rejection for the right shoulder being created
Target that also aligns with a rejection on the bearish trendline in red!
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I forgot to post yesterday my second trendline shorter term (in orange) which was interesting:
I'm posting especially today to remind you of a chartist rule that is also important: "If the left shoulder is greater than the right shoulder, the head and shoulders pattern offers better performance." ... what is the case
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Pullback in progress (very common, see my "VERSION 1") or invalidation of the pattern?
This is the rejection (if not crossing) on the Red Bearish Trendline that will certainly answer this question
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Today: double rejection on the Red Bearish Trendline confirmed
Height of the Head= 9100 - 7440 = $ 1660 Target = Neckline ($ 7440) - Head Height ($ 1660) = $ 5780
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Reject recorded by a dump (-$200) going in the direction of a Pullback
Altcoins mainly impacted by this dump... Ethereum etc.
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Three golden rules on transaction volumes: - Each rising phase must be marked by a voluminal peak - Each phase of decline must undergo a decrease of the volumes - The highest volume is at the first shoulder or possibly the head So, the H&S is healthy and compliant
(rule 1 = my 3 circles, rule 2 = my 3 red arrows, rule 3 = the horizontal volume average from the top of the left shoulder to the head, then down constantly from the head to the right shoulder cf my dashed orange arrow)
Excellent analysis- thank you bud, I think you could definitely be right on this one. It would make sense to have a relief rally to about that level and print a H&S.
great, i have the exact same drawing. if we HS, then the target below is also near 0,618 of the entire 3150-9100 wave, if i remember correctly. around 5400-5200
MaxHodler
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@NaturalPatterns, thank you!
and indeed, only with the present publication:
the height of the possible head ($ 835 x2)
applied under the possible neckline ($ 7440)
this gives a target at 7440-1670 = $ 5770 ;)