thank you for your analysis, but I think the price will fall, and follow the head and shoulders pattern price movement, for the below reasons:
-this is downtrend at the long-run movement and now playing down through the channel that you paint (the channel you paint is correct).
- the price is below MA 200, that to keep prices downtrend.
what makes my though of downtrend is wrong is that MACD showing the unclear hidden divergence of price continuation for an uptrend.
I would like to read your reasons for a false head and shoulders?
jihadHejaz
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@Learn05, Hi,
thank you for the replay, I'm really interested in reading what other traders think about trades
my reason to think it is a false head and shoulders, that head and shoulders will not be true when the price is sideways, it must be on the top of the trend or at the bottom (reversed head and shoulders)
altho the price can likely break down not because of the head and shoulders pattern, but because it reached the end of the small ascending channel and the resistance of the descending channel
I like to wait to see one of the breaks outs I mentioned before
Learn05
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@jihadHejaz, I totally agree with the sentence "altho the price can likely break down not because of the head and shoulders pattern, but because it reached the end of the small ascending channel and the resistance of the descending channel".
it's too early to see flag pattern and decide the break or penetration.
All my respect again my friend.
jihadHejaz
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@Learn05, thank you, my friend, I was more than glad to read your opinion
thank you for your analysis, but I think the price will fall, and follow the head and shoulders pattern price movement, for the below reasons:
-this is downtrend at the long-run movement and now playing down through the channel that you paint (the channel you paint is correct).
- the price is below MA 200, that to keep prices downtrend.
what makes my though of downtrend is wrong is that MACD showing the unclear hidden divergence of price continuation for an uptrend.
I would like to read your reasons for a false head and shoulders?