Introducing series topics of trading systems we gonna do on Tradingview and hope readers can learn something from our educational content. Three main systems are the followings: 1)Pattern recognition 2)Trending following 3)Counter trend
Start with pattern recognition, and we will mainly cover two main categories of price patterns: Major Reversal patterns and continuation patterns. Then introduce today’s educational content: H&S pattern, which is probably the most reliable and best known of all major reversal patterns. Most of the other reversal patterns are just variations of H&S.
Volume Factor: H&S Pattern is relatively easy to recognize but many people ignore the importance of volume: The head should take place on lighter volume than the left shoulder which indicates a diminishing buying power. And volume should also expand on the breaking of the neckline to confirm the pattern.
Price Target: :Also the price target is not guaranteed to be the height of pattern, height may only be a minimum target. Also when we take other factors into consideration such as pivot support area, we need to adjust our price target rather than brainlessly using the height of the pattern as price projection.
Coming back to the topic Bitcoin chart as of today. Bitcoin is also forming the same pattern on a larger time frame.
What do you think, will Bitcoin hold the neckline and rebounce above the right shoulder to form a new bullish trend or will Bitcoin break the neckline with volume confirmed to aim for the next pivot support (also the previous breakout level) around 20,000?
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