BitcoinShort
How to trade Inverse H&S chart pattern
Updated
Hello Traders,
BTC might be forming an inverse H&S and you can trade it by entering early (very risky and would need tight stop-loss) if a candle closed with good volume above EMA 8,13, 31, 55 and EMA 55 (in red ) is below all three 8, 13, 21. Plus, in MACD blue line should be above the orange. A good indication would be a large volume like in the previous dip.
Also, if you want to play it safe, you can wait for the pullback to the neckline which confirms having a solid breakout.
BTC might be forming an inverse H&S and you can trade it by entering early (very risky and would need tight stop-loss) if a candle closed with good volume above EMA 8,13, 31, 55 and EMA 55 (in red ) is below all three 8, 13, 21. Plus, in MACD blue line should be above the orange. A good indication would be a large volume like in the previous dip.
Also, if you want to play it safe, you can wait for the pullback to the neckline which confirms having a solid breakout.
Note
We had a breakout but the bears are pushing it down. Watch the candle closely to determine if we end up with a shooting star. We need to sustain 8900+ in order to go higher.Note
BTC is testing the red line (55EMA). If it holds, we will get a breakout. Also, focus on RSI not to go below the red line.Note
BTC is above the neckline. Watch out for volume confirmation.Trade active
This is the signal. Good volume, 55EMA red line below all, RSI going up, and MACD blue is above orange.Note
We are facing two major resistances, the red line, and the 200EMA. if BTC stays above 10k, it will attract more people to get in and drive the price higher.Trade closed: target reached
Put a trailing stop to secure what you have made so far.
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