TroyByrne

BTC forming another H&S? Be educated.

Education
BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
Well possibly anyway. Dependant on wether or not another head and shoulders is realised on the hourly chart, it is looking fairly likely but we will have to wait and see.

The left shoulder is usually formed at the end of an extensive move during which volume is noticeably high. Once the high of the left shoulder is formed, there is a subsequent reaction and prices slide down to a level which generally occurs on low volume . The prices then will rally up to form the head with normal or heavy volume and subsequent reaction downward is accompanied with lesser volume . The right shoulder is formed when prices move up again but remain below the central peak called the Head and can fall down nearly equal to the first valley between the left shoulder and the head . Volume is usually smaller with the right shoulder formation compared to the left shoulder and the head formation, from here with the right shoulder being denied, when retesting the last high, we generally have a large fall. This fall tends to be the distance from the high of the head to the neckline. This does not always happen, if volume comes back in from larger bids it can stop the slide. This seems to be more prevalent in Crypto too. The opposite is said to be true for inverse head and shoulder formations. Also if the head is lower than the shoulders, this is generally referred to as a triple top or bottom, it good to remember if you see a triple form and a rally to a fourth top is underway, it usually is a sign that it will continue to a new high or low.

Good luck and Happy Trading
Comment: Turns out it was a triple top after all
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