While the market is sideways, here is an outline of the H&S pattern we have been watching play out on Bitcoin. Even if you already know what it is, nothing replaces repetition to ingrain these patterns into your mind!
This should not be the basis of your trading, only something to pay attention to while keeping risk management in the forefront.
- Formed with a peak, followed by a higher peak and than another lower peak.
- Volume just builds a stronger case for the pattern of price. It was higher during the formation of the left shoulder
than it was during the formation of the head which showed that uptrend could have been losing momentum.
- If the last peak (left shoulder) is lower than the first, this indicates a stronger breakout
- A general way to judge targets is taking the distance from the necklines to the height of the head (shown in blue)
- Keeping a trailing stop onto the next levels of support (targets)
- Initial stop should be where the pattern becomes invalidated, NO WHERE ELSE
twitter.com/crypto_d.../1071774672021274625
This should not be the basis of your trading, only something to pay attention to while keeping risk management in the forefront.
- Formed with a peak, followed by a higher peak and than another lower peak.
- Volume just builds a stronger case for the pattern of price. It was higher during the formation of the left shoulder
than it was during the formation of the head which showed that uptrend could have been losing momentum.
- If the last peak (left shoulder) is lower than the first, this indicates a stronger breakout
- A general way to judge targets is taking the distance from the necklines to the height of the head (shown in blue)
- Keeping a trailing stop onto the next levels of support (targets)
- Initial stop should be where the pattern becomes invalidated, NO WHERE ELSE
twitter.com/crypto_d.../1071774672021274625