This is weird. It looks like THE PERFECT HEAD AND SHOULDERS, but it is missing two key components of the pattern:
- It is coming from a bull trend, like every H&S should. It is very clearly coming from a downtrend.
- Volume from the right shoulder SHOULD be lower than volume from the left shoulders... and quite clearly that is not the case.
However, it's so beautiful, so perfect, that you can't just ignore it. I've consulted with a few knowledgable traders and they say that even though it isn't following the supposed trend, it is still be valid and should be taken as a continuation pattern.
If that's the case, the only support I can find on my charts are from VERY old lines (can't even see them on this chart), the closest one at exactly 4436, but if we indeed finish the pattern it won't be today so it could extend until at least 4200 since it's a steep descending line.
I am STILL holding the short I opened from when the ascending triangle broke a few days ago, and even though I'm tempted to take profit, I will hold it for a bit.
If we manage to rally around 100 usd, I'll probably take the money and look for a better entry.
- It is coming from a bull trend, like every H&S should. It is very clearly coming from a downtrend.
- Volume from the right shoulder SHOULD be lower than volume from the left shoulders... and quite clearly that is not the case.
However, it's so beautiful, so perfect, that you can't just ignore it. I've consulted with a few knowledgable traders and they say that even though it isn't following the supposed trend, it is still be valid and should be taken as a continuation pattern.
If that's the case, the only support I can find on my charts are from VERY old lines (can't even see them on this chart), the closest one at exactly 4436, but if we indeed finish the pattern it won't be today so it could extend until at least 4200 since it's a steep descending line.
I am STILL holding the short I opened from when the ascending triangle broke a few days ago, and even though I'm tempted to take profit, I will hold it for a bit.
If we manage to rally around 100 usd, I'll probably take the money and look for a better entry.