Head and shoulder pattern on Bitstamp predicts a new leg up!
Hey guys!
Just spotted this head and shoulders formation on stamp. This is the inverted version of a normal head and shoulders. The inverted head and shoulders is typically seen in downtrends. The inverted left shoulder should be accompanied by an increase in volume. This is what we saw around the 18th of august. The inverted head should be made on lighter volume. The rally from the head, should show greater volume than the rally from the left shoulder. Ultimately, the inverted right shoulder should register the lightest volume of all. This is what we're seeing now. If the market rallies through the neckline, a big increase in volume should be seen.
Our target is calculated just like the cup and handle pattern.
Measure the distance between the head and the neckline, and that is approximately the distance that the price will move after it breaks the neckline.
533-453 = 80USD, 538+80 = 623USD
Have a good day & don't forget to like :)
Just spotted this head and shoulders formation on stamp. This is the inverted version of a normal head and shoulders. The inverted head and shoulders is typically seen in downtrends. The inverted left shoulder should be accompanied by an increase in volume. This is what we saw around the 18th of august. The inverted head should be made on lighter volume. The rally from the head, should show greater volume than the rally from the left shoulder. Ultimately, the inverted right shoulder should register the lightest volume of all. This is what we're seeing now. If the market rallies through the neckline, a big increase in volume should be seen.
Our target is calculated just like the cup and handle pattern.
Measure the distance between the head and the neckline, and that is approximately the distance that the price will move after it breaks the neckline.
533-453 = 80USD, 538+80 = 623USD
Have a good day & don't forget to like :)
