You do realize a head and shoulders pattern is a sign of downtrend to come right? I do think we still have higher to go but this idea isn’t accurate. The head needs to be the highest point but based off your idea the left shoulder is?
Wompus
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@MC_Peewee, the head does not have to be the highest point. hns is not always straight. The Left Shoulder is compared as Wave B of corrective Elliott Waves Press play man. Good luck to you.
deactivatedaccount123
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@Wompus, The head has to be higher on a regular head and shoulders than the left and right shoulder. Look it up.
Either way, this regular head and shoulders pattern is a downtrend signal, not an uptrend one.
Wompus
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@MC_Peewee, I will do more research but so far it has gone up...
Wompus
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@MC_Peewee, I mean, what did I do wrong exactly, if so? I need to know. Because I got good things in chat about it. It looks wonky with the extra dip...
deactivatedaccount123
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@Wompus, I'm not well versed in head and shoulder patterns, so don't quote what I say. However, from what I've learned from other traders, the head is always higher than the shoulders. That's why it's called head and shoulders. If you look at a person, the head is always above the shoulders lol. As far as why price went down, that was because we needed a retracement first of all. Secondly, we had some seriously powerful bearish divergence in the RSI. As for why it went up so far, there are numerous POSSIBLE reasons. First of all, we hit the downtrend line, wicked inside of it, and closed candles directly above it which showed the bulls weren't willing to allow us to stay in downtrend. I'm not good at Elliott Wave theory but this could of been a retracement wave followed by an impulse wave.
Don't get me wrong here man, I'm not trying to nitpick your idea or anything. I just would hate to see a trader base his trades off of wrong information and get rekt because of it. Believe me, I've been there, and just like I'm doing, other people with much more knowledge than I have in this market made me aware that my head and shoulders patterns in my earliest ideas weren't actual head and shoulders. I would strongly suggest looking up the proper pattern to get a better understanding of it, as again, I'm not well versed in them. All I know is the head is always the highest or lowest point.
Wompus
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@MC_Peewee, Cool. Just seeing if you were trolling and i appreciate the love. I should have checked correctional first. I'm ususally better with Elliot Wave Patterns. Cheers.
deactivatedaccount123
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@Wompus, Hell yeah man, no problem. Like I said I just would hate to see a trader make a trade off of an incorrect pattern and then lose money because of it. Especially us little fish, we need every penny we can attain in this market ya dig? So yeah, if I see something that I believe to be incorrect in someones idea I try to let them know for that very reason. If noone is nice enough to tell us what we're doing wrong, all we'll do is continue to lose money. I truly believe that traders should help other traders where they can, that's the entire point of this platform.
Hope I may have saved you a headache my friend <3
Wompus
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@MC_Peewee, agreed m8. Thanks for the warning and happy trading. I'm doing pretty well using investing.com's signals. It's free. Made about .007 in scalps tonight!
deactivatedaccount123
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@Wompus, PS do not ever base a good idea off feedback in chat. A lot of people in chat are trolls and purposely try to steer others in the wrong direction. Just be careful man