RhythmTrader
Short

Textbook H&S On Bitcoin

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
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.


https://twitter.com/crypto_dizrupt

Comments

In what textbook is the "head and shoulders" in a downtrend ? In what textbook is the "head and shoulders" a continuation pattern ?
Reply
hypercraft Je_Buurman
@Je_Buurman, H&S and reverse H&S
Reply
RhythmTrader Je_Buurman
@Je_Buurman, This was a reversal, the H&S was a short-term uptrend of $1000. Nearly a 30% move on BTC


It's a pattern without rigid definitions and depends on your time-frame.
Reply
Je_Buurman RhythmTrader
@Crypto_Dizrupt, just answer my question please "in what textbook did you read that" in other words "where/who taught you that" ? All i see is a downtrend, then the H&S starts en in the end it comes out at the bottom.
Reply
RhythmTrader Je_Buurman
@Je_Buurman, "Textbook" is more of a general term to a wide array of educational resources created by thought leaders in the market.

You can call this pattern whatever you want, it doesn't change the underlying supply and demand dynamics taking place.

Terminology depends trader-to-trader.
Reply
Je_Buurman RhythmTrader
@Crypto_Dizrupt, Thank you very much, i have no further questions, i have learned enough for the day (i'm going to let that new info sink in now) Textbook = general term created by "thought leaders", Pattersn = can be called whatever one likes (and differs from trader to trader). Please keep it coming, eager to learn.
Reply
RhythmTrader Je_Buurman
@Je_Buurman,

https://www.peterlbrandt.com/do-continuation-head-and-shoulders-patterns-really-exist/

I seem to be in good company with my thought process.

I'll continue labelling it as such.

Happy to help any time buddy!
Reply
Je_Buurman RhythmTrader
@Crypto_Dizrupt, Thank you, really interesting read. But even they admit (and argue) it's not really a classical (textbook) H&S, but because of lack of a better name use the term. I think labeling it as "Continuation H&S" (vs classic H&S) would be a good thing (to avoid confusion in the future). Thnx again (no sarcasm this time) ;)
Reply
RhythmTrader Je_Buurman
@Je_Buurman, No worries man. Trading is about taking different sides.

I'll start saying the entire pattern name from now on, including "continuation". Good call
Reply
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