mljones
Short

Below This Line Bulls Will Panic

POLONIEX:BTCUSDT   Bitcoin / Tether USD
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3
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Everyone is posting about this head and shoulders bottom.

That seems to be basically the only thing the bulls can come up with as to why they think price will go up from here.

So without this one single pattern, a LOT of bulls will start to panic all at once because they know that they're trading against the trend and don't want to be holding the bag.

So I am considering putting a few stop limit entries below that trend line because once this inverted head and shoulders pattern is invalidated it will touch off a major stop run to the downside.
Dec 31
Comment: The panic line has now been breached:
Dec 31
Comment:
Its getting close, we will see soon what way the market is going to choose.
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mljones GraceUnderFire
@GraceUnderFire, are you using that line to scale in long?
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@mljones, I have been going short but keeping an eye out for that line. If the head and shoulders was legitimate this line would be the only possible trend line, considering the volume profile.
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@mljones, and also yes If I see the price pump hard from this line I will go long.
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You should start off learning what a inverse head and shoulders requires, then you would know that your head is on the wrong point. Here is a hint, volume.
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mljones GraceUnderFire
@GraceUnderFire, It's not my inverse head and shoulders. This is the bulls' head and shoulders that has been posted over and over and they all depend on that trend line not being broken. There's nothing wrong if the head point, and even you believe it is off by a little bit one way or another it to volume should not matter.

If your trade depends on a single point being "exact" in some way then you're over fitting.

You don't have a valid thesis for a trade until you have agreement of confluence. The bulls' charts don't have any confluence because there's nothing else on the chart that validates the head and shoulders. The bear chart has many points from the down trend to justify a downward thesis.

Examples of bulls charts that depend on that trend line holding:





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@mljones, Inverse head and shoulder points really strongly on volume, unlike normal head and shoulders. Don't be so Laissez-faire about having an indicator incorrectly plotted.
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GraceUnderFire GraceUnderFire
@GraceUnderFire, meant to say "rely" not "really"
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mljones GraceUnderFire
@GraceUnderFire, so you're saying that the bulls' inverse head and shoulders is wrong? That's why I've been posting short charts for the last week or so.
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