IH&S not invalidated yet!! Buy zone and price targets
OK, so here it is. I've heard a lot of people talking about the so-called "inverse head and shoulders" reversal pattern.
Let's get to it. First, it has yet to be invalidated. TRUE, it has *not* been validated yet. For it to be a valid pattern, BTC has to break above 68XX zone.
My trading stack is all in fiat at this moment. Unless you're a highly disciplined scalper or day trader, 5800-6800 is a pretty well recognized "no trade zone" ATM. If you want to gamble, you can take a position above 6450 and hold. I plan to go all in above 6850 (green zone on chart) if the volume profile fits an IH&S breakout, with the initial target around 7400 (red zone, also corresponds to .786 fib level retracement). In an inverse head and shoulders, remember, the biggest characteristic is bear volume is high on the left shoulder decline, with declining bearish / overall volume on the right shoulder uptrend. We so far seem to have that picture playing out, although this could break down at ANY TIME.
Aside from just continuing to trend sideways, the market may just head back below 5800, with not much in terms of obvious support lines after that. I probably will pick up more at those lower levels if it gets that far down, not so much to swing trade, more to just add to my cold storage stack.
Cheers! Please give me constructive criticism. I may have used the fib tool improperly, but I think the overall idea is valid, albeit tentative (e.g., plan for how to trade on the IH&S if it plays out).
Let's get to it. First, it has yet to be invalidated. TRUE, it has *not* been validated yet. For it to be a valid pattern, BTC has to break above 68XX zone.
My trading stack is all in fiat at this moment. Unless you're a highly disciplined scalper or day trader, 5800-6800 is a pretty well recognized "no trade zone" ATM. If you want to gamble, you can take a position above 6450 and hold. I plan to go all in above 6850 (green zone on chart) if the volume profile fits an IH&S breakout, with the initial target around 7400 (red zone, also corresponds to .786 fib level retracement). In an inverse head and shoulders, remember, the biggest characteristic is bear volume is high on the left shoulder decline, with declining bearish / overall volume on the right shoulder uptrend. We so far seem to have that picture playing out, although this could break down at ANY TIME.
Aside from just continuing to trend sideways, the market may just head back below 5800, with not much in terms of obvious support lines after that. I probably will pick up more at those lower levels if it gets that far down, not so much to swing trade, more to just add to my cold storage stack.
Cheers! Please give me constructive criticism. I may have used the fib tool improperly, but I think the overall idea is valid, albeit tentative (e.g., plan for how to trade on the IH&S if it plays out).
Comment:
Describe your update...
Comment:
Update - as of about an hour ago, we rocketed past the 6850 zone and validated the IH&S. Sure, it might have been a short squeeze - but I'll take it!!!