Head and shoulders in combination with fan formation
We can see a head and shoulders reversal pattern forming on BTC 1h. Volume has decreased on each trough descent which is typical in head and shoulders patterns, specially downtrend reversals. Waiting for a breakout with high volume, if this is not so, then the pattern may be too weak specially considering it is a reversal to a downtrend. After the breakthrough a return to the neckline is expected.
Influencing factors:
+ Green line is a long term trendline with three bounces in the past year and no breakthroughs. High indicator that a reversal may soon take place.
+ We can also see a fan in this current downtrend where price has already broken through the first and second trendlines.
Influencing factors:
+ Green line is a long term trendline with three bounces in the past year and no breakthroughs. High indicator that a reversal may soon take place.
+ We can also see a fan in this current downtrend where price has already broken through the first and second trendlines.
Note
Breakout failed and pattern was not completed.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.