TL:DR - We are nearing completion of right shoulder in a bullish inverse Head and Shoulders patter which has the potential to take us to $700 (but I am doubtful we get there). I am buying with an initial profit target of $660.
This is the Eth:USD chart with 4 hour candles. On my last post I used 1 hour candles and talked about the inverse H&S pattern but didn't chart it until later on in the post. Price has since started to finish the right shoulder of the inverse head and shoulders pattern. The neckline is at about $623 which is above both the 10 MA and he dotted red downtrend line.
To calculate a price object in any Head and Shoulders pattern take the distance from the peak of the head to the neckline. This distance is the general range price will move up or down upon break out of the H&S. I conservatively measure a price movement of $80 and with the expected neckline breakout of $623 then this inverse H&S pattern has the potential to take us to $700.
I am doubtful price will make it to $700 and have a more conservative target of $660 - $680. I am buying now as we finish the right shoulder. Did I sell at $696 just 2 days ago? Yes, we were heading for a break of the 10MA and I wanted to protect profits in case the inverse H&S was invalid. I am now more confident it is valid and comfortable buying back in at a slightly higher price.
IF we go bullish I will watch the volume and price action. A big spike in volume and we may in fact make it to $700. If we move up on low volume then I will be quick to sell at any sign of a reversal.
What if we break to the downside? It's entirely possible and I will have stop losses placed to protect against large losses but my current gut feeling is bullish based off of the chart.
***This is not investing advice. I am not an investing professional. Do not invest what you cannot afford to lose. All investors should seek guidance from licensed financial advisers and not random people on the internet.***
This is the Eth:USD chart with 4 hour candles. On my last post I used 1 hour candles and talked about the inverse H&S pattern but didn't chart it until later on in the post. Price has since started to finish the right shoulder of the inverse head and shoulders pattern. The neckline is at about $623 which is above both the 10 MA and he dotted red downtrend line.
To calculate a price object in any Head and Shoulders pattern take the distance from the peak of the head to the neckline. This distance is the general range price will move up or down upon break out of the H&S. I conservatively measure a price movement of $80 and with the expected neckline breakout of $623 then this inverse H&S pattern has the potential to take us to $700.
I am doubtful price will make it to $700 and have a more conservative target of $660 - $680. I am buying now as we finish the right shoulder. Did I sell at $696 just 2 days ago? Yes, we were heading for a break of the 10MA and I wanted to protect profits in case the inverse H&S was invalid. I am now more confident it is valid and comfortable buying back in at a slightly higher price.
IF we go bullish I will watch the volume and price action. A big spike in volume and we may in fact make it to $700. If we move up on low volume then I will be quick to sell at any sign of a reversal.
What if we break to the downside? It's entirely possible and I will have stop losses placed to protect against large losses but my current gut feeling is bullish based off of the chart.
***This is not investing advice. I am not an investing professional. Do not invest what you cannot afford to lose. All investors should seek guidance from licensed financial advisers and not random people on the internet.***
Note
Price has shied away from the neckline and the potential inverse H&S may be dead. This is the risk of trading against the trend. It is still possible this formation is salvaged but price will have to push bullish in the next 24 hours. I have no trades open other than my long from $525 which has turned into more of a position/HODL trade.
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.