Bitcoin: Smaller Time Frame Head & Shoulders

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
This has not fully formed, confirmation is key on this pattern. If this forms properly:

Entry: Approx. 8k (Neckline break as shown above.)
Exit: $7,627 (Measure from the head peak to the neckline, add that to the neckline break)
Stop loss: $8,304 (Always above the R shoulder)

  • I am not 100% satisfied with the volume set up on this, but generally H & S are never perfect. For now, this is close enough. I will be watching the decline of the right shoulder for any volume variances of the H & S rules to potentially cancel out the trade.

  • Entering this trade, I always wait for the confirmation break of the neckline instead of doing so at the peak of the R shoulder, the formation needs to confirm.

  • I typically expect a neckline retest upon the break, my stop is set above the right shoulder because many times buyers temporarily rally the price up out of a neckline break for one more go at a rally. There is some support directly below the neckline, a retest above the neckline would not be out of the question before completing the formation.

  • The neckline break should occur with a volume spike. You can see the volume surge with the help of a volume indicator like the O.B.V. or C.M.F..

  • Patience is the key for trading head and shoulders patterns.

I highly recommend you take a look at the two related ideas titled "Learn To Identify & Trade The Head & Shoulders Pattern Properly" at the bottom of this idea for further studies.

Thank you for reading and please support by clicking like on this analysis. Like, follow, share and interact to help me stay motivated. Thank You! :)

This entire publication is merely a educational publication on how one would potentially trade this pattern. Do your own research and analysis and never rely on anyone including myself for financial advice.
Order cancelled: Entry never produced, H & S structure is no longer a valid structure in this idea. Note: There are still a few bearish qualities & bearish patterns forming. Those could still transpire at a later time as price action develops.
All posts are for educational purposes and are simply my views of markets conditions. At no point should you act or trade upon my posts or

Please do your own research and use my content to educate yourself.
As long as the right catalyst presents itself, I’ll say this is a go!
iHS & hs patterns very much prolonged in the last few months.
jansen16 jansen16
But still, very good idea and foresight. Way to ignore the noise of the populous. Well done!
Bitcoin has to break this pattern to be bull again
too bad youll never be red!!!
This well played, sir :)
Hi Nick, i'm looking in 4H timeframe this divergence between CMF, CCI coded OBV and Price. What do you Think?

Ascending right angle triangle...

my next target is at 8750 ish
then back down to the 6700-6800 ish area
That's a longass right shoulder. Must be a tennis player.
jscduk12 lisek15lisek
@lisek15lisek, This made me laugh, so thank you lol
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