The right shoulder, if and when it forms will be the peak before wave C starts.
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It's not too much to ask I guess, hit the like if you visit and if you agree and please by all means engage by commenting something nice. If you don't agree, please also leave a comment as to why and both of us and the others might learn something out of it. It's your support that will motivate me to contribute more! Thanks in advance!
This is not how head and shoulders pattern works, you can't call this pattern. You will get wrecked
TulpenFieber
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@TheCryptAlpha, well I'm still learning. Why is that so? I read the the end of corrective wave B is usually identified by the formation of the right shoulder and I already see a left shoulder and a head in formation. No? Did I call it too soon?
TheCryptAlpha
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@TulpenFieber, Lets start by a H&S Formation can only be identified after the fact, so trading it is out of the question. Now the actual formation is more apparent once the move has been made, otherwise its guess work. In trading you don't want to be guessing what the next move is, you want to trade in a way where you can predict the next move with clear probabilities that will favor you and your trade. H&S just like Eliot wave is something that can only be predicted after it has happened and its really not something that you should put too much effort into identifying, its going to make you create false scenarios / stores and thats not what traders do. We want to trade probabilities. For example, If we see the market falling and failing to break out of $13,200 we can assume that there is a lot of resistance and that if we take a trade @ 13K that a good target of $12800-12500 should be in play. Therefore you don't care what formation it is you are trading based on technicals and price action. You want to give yourself bigger chances of being successful. and I promise you no professional traders are sitting there going, hey is this a head or a shoulder, it just doesn't work this way. Read some books on technical analysis and learn from the professionals. Good lukc
TulpenFieber
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@TheCryptAlpha, Respect! And thank you for taking the time to read my chart, comment and also explain! You are amazing! I will read more as advised, I'm not trading the pattern though, I shorted at the resistance already at 13154 and I'm waiting to close at 11625. The hns is just an illustration to confirm that we might actually be on wave B and if it does happen, I might be well in position to identify the top of the right shoulder, where the wave C might begin. I do agree with you, one shouldn't trade by guess and I don't do that. Because I have learnt it the hard way.
@TheCryptAlpha, even the volume seems to follow the exact description
jdharward
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I'm thinking the same thing. Double top. Might also run out of steam right about here too, based on Gann.
But then again, when you can just print 100M of monopoly money, on demand, who the F knows?
At some point, and I think it's going to be soon. money is going to start flowing out of BTC. Either conversion back into actual fiat, altcoins or both to various degrees.