H&S as indicator

Morning folks,

So, the bounce that we've discussed from 50-51K area has happened, and now we have the next problem - up or down? On daily chart we have bearish hints, such as wedge consolidation and MACD divergence, but price action is too slow and gradual to treat it as reversal already. It means that BTC could make another swing up inside the daily wedge. And to control the execution of this scenario and trading planning, we intend to use 1H reverse H&S pattern.

Logic is simple here - if BTC holds the pattern and 53K potential lows in particular, then indeed another upside swing should happen, somewhere to 60K area, at least. Conversely, drop below 53K lows of right arm, moving back to 50 means that we probably are going to next 46K target that we have on 4H chart.

Scalp traders could use H&S for trading, as usual. Just avoid vertical drop to 53K. In this case do not take any longs, we need gradual action down, no collapses. H&S failure means bearish setup and downside continuation. That's the idea.