CryptoCosmonaut

Volume is confusing me.. help!

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
I am confused why volume is pretty consistent throughout this pattern forming.

If it's truly an inverse head and shoulders we should see a decrease in volume after the head right?

As you can see, I've circled the areas of concern to me, and the volume is consistent on the right shoulder, head, and right neckline.

Could this be consolidation instead of reversal? I am looking to trade the convincing break but honestly I'm very hesitant.

Thanks in advance for your comments.
Comment:
Some other key points to my argument that this is a falling broadening wedge besides volume.
Comment: Inverse head and shoulders invalidated if we fall below the green channel, but interested to see where this will take us. Either way, end result is a bullish break in either patterns.

Comments

Hey, thanks for your insight! I'm one of the few that don't believe this is a head and shoulders, but not because of volume patterns (although your point is very pertinent). I think the right shoulder will be broken, at least on shorter time frames, because we still need to test 3K. People underestimate the psychological significance of this level, but it was tested at the reversal of both EW1 and EW4 of the 2017 bull run. I think that the test of this level will signify the end of a bear trap and begin a bull run for 2019.
Reply
CryptoCosmonaut OrigamiOracle
@OrigamiOracle, I have been positing trading ideas since our recent low, and i expected some sort of bounce here but i do also believe that the bottom for the bear market is not in yet. until recently, this pattern has started to look more like an inverse head and shoulders, but the volume looks as if it's consolidation or some sort of descending broadening wedge instead.
Reply
OrigamiOracle CryptoCosmonaut
Reply
CryptoCosmonaut OrigamiOracle
@OrigamiOracle, What is this a crystal ball indicator? Haha!
Reply
OrigamiOracle CryptoCosmonaut
Haha no crystal ball @CryptoCosmonaut, the blue lines are fib time zones and were put in after the 5 impulse waves, they predicted the timing of the extended B wave (blue 5) and predict the C wave to hit at around the blue 8. The yellow wave is taken from the timing of impulse and correction during this bear trap, and the purple bar pattern was taken from the previous impulse and correction - both also predict a trough at the blue 8 (28th Dec). The bottom of the bear trend (that I think you also have identified in your charts) indicates a potential short squeeze (at least on Bitmex) to around 2900 at this time. The yellow fib was placed recently with 2900 in mind, but as an extended drop.
Reply
OrigamiOracle OrigamiOracle
(Long squeeze, not short squeeze)
Reply
CryptoCosmonaut OrigamiOracle
@OrigamiOracle, This is all good to know, what is the indicator called?
Reply
OrigamiOracle CryptoCosmonaut
@CryptoCosmonaut, There's no indicator on the chart, just the candles. The purple haze is the bar pattern from the previous impulse/correction cycle. Yellow horizontal lines are fib levels, blue vertical lines are fib time zones (timed to the short term impulse waves), and the yellow wave is a sine wave placed according to the cycles of optimism/pessimism (see attached chart).
Reply
OrigamiOracle OrigamiOracle
@CryptoCosmonaut, BTC is also showing a reversal pattern known as a nonfailure swing, which corroborates with your skepticism about the H&S formation. See this link for a textbook image of the pattern: https://i.gyazo.com/45ae8dbfd8545f2b862563dd2cb28a7a.png
Reply
CryptoCosmonaut OrigamiOracle
@OrigamiOracle, thank you for your comment, it certainly brought clearity to my thinking and was glad to see it rise
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out