On the one hour time frame, the price of ETHUSD has been spotted forming a bullish chart pattern called THE HEAD AND SHOULDER BOTTOM.
We all know that the head and shoulder bottom chart pattern is a well know and also a reliable chart pattern.
The following below are what to look out for when trading this pattern, as thing we have always pointed out on previous analysis:
Price trend downward leading to the pattern
Shape looks more like a 3-valley pattern with the middle valley below the others. The pattern should look like an inverted person's head and shoulders, proportional, and not lopsided.
The two shoulders should bottom near the same price, be nearly the same distance from the head, and look similar (both wide or both narrow).
The pattern confirms as a valid one when price closes above a down-sloping neckline or above the right armpit when the neckline slopes upward. Always wait the breakout, before taking a position.
MOST IMPORTANTLY: Patterns with down-sloping necklines perform marginally better.
LONG:
TARGETS ARE AS FOLLOW: $251 UP TO $261
Risk Disclaimer:
Trading cryptocurrency on margin carries a high level of risk(volatile), and may not be suitable for all trades who are yet to understand how to use STOP LOSS. The high degree of leverage can work against you as well as for you.
It is your responsibility to confirm if you want to take this trade or not. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations.
If you do not fully understand these risks you must seek independent advice from your financial advisor.
We all know that the head and shoulder bottom chart pattern is a well know and also a reliable chart pattern.
The following below are what to look out for when trading this pattern, as thing we have always pointed out on previous analysis:
Price trend downward leading to the pattern
Shape looks more like a 3-valley pattern with the middle valley below the others. The pattern should look like an inverted person's head and shoulders, proportional, and not lopsided.
The two shoulders should bottom near the same price, be nearly the same distance from the head, and look similar (both wide or both narrow).
The pattern confirms as a valid one when price closes above a down-sloping neckline or above the right armpit when the neckline slopes upward. Always wait the breakout, before taking a position.
MOST IMPORTANTLY: Patterns with down-sloping necklines perform marginally better.
LONG:
TARGETS ARE AS FOLLOW: $251 UP TO $261
Risk Disclaimer:
Trading cryptocurrency on margin carries a high level of risk(volatile), and may not be suitable for all trades who are yet to understand how to use STOP LOSS. The high degree of leverage can work against you as well as for you.
It is your responsibility to confirm if you want to take this trade or not. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations.
If you do not fully understand these risks you must seek independent advice from your financial advisor.