As per the chart you can see that a H&S (1h TF) and cup and handle (1h, 30m, 15m, 5m TF) are in the making.
We know chart patterns’ success rates and profitability because Tom Bulkowski, the author of The Encyclopedia of Chart Patterns, has spent decades researching this topic.
H&S succes rate = 81% with a price change of -16% on avarage.
Cup and handle succes rate = 95% with a price change of +54% on avarage.
Since the flat top pattern is broken to enter a downtrend it is hard to imagine that the cup and handle will win from the H&S and flat top since it is also noticable once a flat top pattern is broken is will retest most of times the resistance level. what is did.
While you zoom in to the 15min chart, it is also very noticable that there is a cup and handle in the creation.
As per the 1h TF's has still not entered the oversold zone it is very plausable that the cup and handle will be broken and be invalid if the RSI will enter the oversold zone.
Same counts for the 4h time frame and divergence is still pending.
On the other hand, it is also widely known that with an uptrend or downtrend the RSI will catch the 40 zone by and uptrend and the 60 zone with a downtrend to continue its trend.
Hope this wil give enough insight for my first idea.
Regards, Vberger.
We know chart patterns’ success rates and profitability because Tom Bulkowski, the author of The Encyclopedia of Chart Patterns, has spent decades researching this topic.
H&S succes rate = 81% with a price change of -16% on avarage.
Cup and handle succes rate = 95% with a price change of +54% on avarage.
Since the flat top pattern is broken to enter a downtrend it is hard to imagine that the cup and handle will win from the H&S and flat top since it is also noticable once a flat top pattern is broken is will retest most of times the resistance level. what is did.
While you zoom in to the 15min chart, it is also very noticable that there is a cup and handle in the creation.
As per the 1h TF's has still not entered the oversold zone it is very plausable that the cup and handle will be broken and be invalid if the RSI will enter the oversold zone.
Same counts for the 4h time frame and divergence is still pending.
On the other hand, it is also widely known that with an uptrend or downtrend the RSI will catch the 40 zone by and uptrend and the 60 zone with a downtrend to continue its trend.
Hope this wil give enough insight for my first idea.
Regards, Vberger.
Comment:
Local support zone of 50625 is broken, I am suggesting to a downtrend/reversal from here on, on the long term (before begin of March).