1. It's not head and shoulders. It doesn't even look like.
2. Inverted h&S DOESN'T work in uptrend. It's trend revensal formation - u can not reverse uptrend by uptrend formation, yes? Same goes with head and shoulders in down trend.
So many pro traders, that don't know the basics...
goldbug1
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@MichalMatysiak, Now that is funny. No offense to the author, but I see more charts with cups, saucers and heads and shoulders patterns that I think hmmmm, please quite giving crayons out in school!!!
goldbug1
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@MichalMatysiak, I guess the traders buying on the floor didn't read that chapter either ;););)!!!
mightytrader
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@goldbug1, I don't understand these patterns and jargon. Can you just explain in simple terms for me. I am a little retarded (i.e. slow).
Basically, I want to know: Is it going to PUMP... or DUMP?
Because I'm starting to get scared how high it's going and September is the month for stocks and stuff to crash... So... I am thinking about just selling now and getting out before it dumps.
mightytrader
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@MichalMatysiak Can you also explain: PUMP or DUMP? What do you think?
goldbug1
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@mightytrader, I'm not sure this is a pump and dump coin, and as a long term investor it is a major holding. What Michael is saying is that the head and shoulders pattern is a trend reversal pattern. So if your in an uptrend and you see an upright head and shoulder pattern, then it is signalling an upcoming retracement. If your in a down trend and you see an inverted head and shoulders pattern (like the one shown above) it signals again a trend reversal to the upside. Since BTC is already in an uptrend the inverted head and shoulder pattern means nothing. But people throw stuff like cups, heads and shoulders on charts because they see them, but they don't necessarily mean anything. I could take any chart and draw heads and shoulder patterns all day, or better yet cup patterns.
If BTC does retrace, and I think it will at some point as we are definitely stretching the 5th wave in the current trend, but that does not mean sell now. Why when it could run another $200 or so. And I would never sell my core position of BTC. I did that once with Apple stock and it taught me a hard lesson. Only sell trading coins.
AzrulAzir
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@goldbug1, inverted HnS in bullish mean continuation. And Head to neck line is target projection. Its not mean nothing to me,, coz with this pattern i know consolidation already finish and i can use Head to neck line as my profit target (from neckline to target).
goldbug1
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@DianKemala, I'm not saying your wrong, I have just never seen it done that way. But my buddy Phil who is a great trend trader agrees with you. He said normally it is a trend reversal but can be used to signal a continuation in consolidation. We disagree on many things, and I guess we can agree to disagree on this. Thank you for the post and the time to respond. Good luck trading today!
UnknownUnicorn920948
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@goldbug1, It doesn't mean that we will retrace. Actually it means nothing. It just doesn't work, besides of that it isn't even similiar to inverted H&S.
goldbug1
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@MichalMatysiak, I have yet to see a commodity equity or crypto that did not retrace. It's inevitable and the longer it goes the harder it falls.
2. Inverted h&S DOESN'T work in uptrend. It's trend revensal formation - u can not reverse uptrend by uptrend formation, yes? Same goes with head and shoulders in down trend.
So many pro traders, that don't know the basics...