The Head and Shoulders pattern is an accurate reversal pattern that can be used to enter a bearish position after a bullish trend. It consists of 3 tops with a higher high in the middle, called the head. The line connecting the 2 valleys is the neckline. The height of the last top can be higher than the first, but not higher than the head. In other words, the price tried to make a higher high, but failed. The closer the 2 outer tops are to the same price, the more accurate the pattern.
If the price breaks the neckline and closes below it, the pattern has completed. Conservative traders may look for additional confirmation. The target can be estimated by measuring the height of the pattern (from the neckline to the head) and projecting this downwards. Common stop levels are above the neckline or above the right shoulder. The Inverse Head and Shoulders is the bullish version of this pattern that can form after a downtrend. TradingView has a smart drawing tool that allows users to visually identify this pattern on a chart.
At previous analysis we have a good bullish run after touch fibonacci support,
In this analysis, we split our chart in 3 pattern :
1. Inverted head and shoulders pattern
You can see inverted head and shoulders pattern already perform,
to trade with this pattern, we can buy after neckline breakup, and wait for retest at 6639
For target, we can aim at inverted head ...
BTC will get to 6900 because Head an Shoulders on 4H timeframe predicts it. As well Fibo 0.618 is 6913, Resistence line is close to 6900 and daily MA is 6934 now.
The EUR/CAD pair has formed a head and shoulder pattern.
The pair has broken out from the neckline and is currently lingering below it.
It's a good time for the bears to enter the market and as long as the pair stays below the neckline, the bearish momentum can only accelerate from here.
Hello traders, after a long way down the pair is giving indications of a retraction. The neck line of head and shoulders pattern is already broken, the target for this moviment is near 1.1520
To me we are just up from anger stage on Wall street cheat sheet - let's see what's coming. Everyone obviously hopes here for massive gains - especially alts - I do admit though - I was impressed with Ontology and Wanchain, but Cardano and Iota didn't explode as I was expecting. We learn every day - from here on I imagine we will see shorts piling up... time will ...
After a very nice short from the top of the 4 hr channel, we made new lows.After price hit the 79.90 support was too strong and we caped off the end of the inverse HS on the 1hr chart. Looking to go long after we reach the original break out point around 81.2 and we get any signal.
As many people have theorized, there appears to be a very large head and shoulders formation in the making.
Looking at yesterday's candle, I was thinking that there may be a 50/50 chance of either breaking out of this downtrend and starting another Bull cycle or completing a perfect right shoulder at $6870 (.382 retracement) which would lead into a major price ...
Looks like BTC might be painting a big H&S to finally exit its falling trading range, and test some key levels. Jugding by the pattern size, if it is confirmed, $4500-$5000 could be a solid area of support.
Well the .1.14500 Crucial support was surely broken last week with a strong bearish candle evident on the weekly chart, thus completing the head and shoulders pattern in the process!. Well so as the classic rule of head and shoulders would say " enter short or long when the price retests the neckline of the completed pattern". This statement holds true to some ...
We may consider 2 possibilities
A: Pump pressure, trend movement (>45 degrees + high volume + breakout) may lead to escape from bearish area. Long positions have medium riskreward (strong bearmarket)
B: Head & Shoulders and dump pressure may lead to lower lows. Short positions have good riskreward for Bearish route.
As long the volume is not increasing and ...
BTC found resistance at the $8500 mark followed by a decent move to the downside
It managed to stay above $6000 horizontal support and a retest of 0.618 fib retracement ($6800) is very likely (descending broadening wedge reversal pattern visible on the 4h chart: https://www.tradingview.com/i/Ann7w7kd/
IF this happens it might also be the right shoulder of an ...
Head N Shoulder pattern forming , spotted this just after the neckline was broken so we excpeting this pair to be bearish for a short while in completion of leg C at the dark line support. It may however create a flag as a retracement after the long short.
