I have been staring at this continuation pattern for a while now and it just doesn't make sense. Head and shoulders are suppose to be reversal patterns, not a continuation pattern, and nothing else I draw seems to make sense. There are a couple of ideas about a triangle formation made out of the neckline and the Head to right shoulder peak but that doesn't look like anything.
The lines hanging off the blue and black head and shoulders are potential targets on a formation that is out of place. No matter what it is I still remain biased to the downside. Here is the 3d USDT polonex chart. We are hanging of the 100 period moving average cliff, and I don't see us keeping our grip. We have a lot more room for shorters to step up here with longs close to all time highs and shorts close to all time lows.
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Whether the head and shoulder targets get reached remains to be seen, but clearly the neckline was tested as support, failed, tested as resistance, where it succeeded, and now we appear to be going down. Ideally we will see a clean break of 170 and a nice impulse down, but we very rarely get our ideal scenario.
Trade closed: stop reached
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Stopped out of my short. Feels bad man. Negation of my primary theory leads to scenario II, where we retest 360 and this wedge performs.