BINANCE:DOTUSDTPERP is showing a Head and Shoulders Pattern, which is a variation of an M formation. What I want to see to feel safe, is price drop during the next daily candle. It would be a complete fail is DOT price exceeds the price of the current top of the Right Shoulder.
I will personally take a short because I can see different confluences in the chart that makes me think we will drop from now. Still, I'll play with a small % of my account because I cannot identify nPOC's and green vector candles. The confluences I see are:
The left shoulder has pins to the high and a stop-hunt rise, drop.
We will probably see a stop-hunt rise in the 1h timeframe. Probably a sharkfin in the TDI before the drop.
The head has a big M formation.
We are in the level 1 retrace, we should see a level 2 drop, retrace, and finally a level 3 drop.
Talking about take profits I will close my positions in the following points:
23.505 (Possible Retrace #1 - Bottom of the RIght Shoulder.) Set SL at entry point once price touches 200 EMA (4h) Close 100% of the position 800 EMA (4h)
Comment
⋅
The H&S is cancelled. We could see a retrace to our entry, close the trade at your own risk.
Trade active
⋅
Decided to set my TP at 25.513 since we have a big vector candles.
Trade closed: stop reached
⋅
I think the best thing is closing the trade here. Just a bad analysis. Lets learn from our errors!