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Headshoulders

Scenario - Possible Sweep of 18k or Even 11-12k Before 40kHere's a scenario where Bitcoin forms a bearish head/shoulders pattern within its parallel downtrend, before breaking out of it to reach 40k. One option has it stopping around the expanded flat's 1.618 one last time @ ~18.3k. Option 2 gives us a new low beforehand around ~11.7-12.5k. For either of these scenarios to play out, Bitcoin would first need to lose 25.2k and then ~19.5k. This is an idea based within another previously published chart linked below:
INDEX:BTCUSDShort
by dudebruhwhoa
BTC 1W hidden Head and Shoulders pattern shown on 2h Looking at the weekly chart, I noticed a clear H&S pattern on VWAP. VWAP is an intraday indicator, but it can show a pattern in larger frames, like now. I was trying to find a way to draw and measure it clearly on commonly used timeframes, but it is most apparent on a 2h chart. As you can see on VPVR on the right, the neckline is below the 27100 resistance, and if it breaks it, there is a gap down to 25100. But the full potential of the pattern targets 23100. On my trend wave indicator, the weekly trend reached a local top on the 17th and turned bearish at the +60 line. Right now, it is right above the +50 line. That area often acts as support and resistance. And here on 2h, the trend is reversing right above the zero line, which is also strong support. Still, since this timeframe is not usual, this could also mean that trend is being rejected from it. The chart is bearish. Volume is low. But the price is what it is. Trade with the trend. But it doesn't hurt to be prepared. Right?
Short
by RockinHood
Head & Shoulders Success and Failure TargetsGrayscale Ethereum Trust ETF appears to be forming a giant head/shoulders. If it continues in that direction, this would make it bullish in the near-term, up to around 20-21. After hitting 20-21, pay attention to whether it succeeds or fails in confirming the pattern and the succeeding in staying below neckline lows or failing and moving back above the right shoulder. Targets shown on the chart for either scenario. Look for a potential move up to 20-21 first.
E
by dudebruhwhoa
Simple Pattern Targets for TeslaTesla looks bearish, a confirmed Head / Shoulders already moved down to its 1x measured target, TP 1. For a bullish outlook, it first needs to get above the resistance area and the neckline of the Head / Shoulders pattern, but before we could consider reaching previous ATH or even a new ATH, it would also need to cross and hold above the right shoulder. More likely, we continue facing resistance in the area marked on the chart (and at the 200 day EMA), and simply continue down to TP 2, around approx $76. It may see some consolidation around TP 1 and the halfway target to TP 1, where it is now, prior to heading further down. Marking the chart short, but accounting for the bull scenario in case it does occur.
NASDAQ:TSLAShort
by dudebruhwhoa
EURGBP, Bearish H&S, Short term sellPrice action is in a down trend as we can see on the HTF price is moving within a decending channel. Looking at the LTF we can see a short term sell opportunity as price is potentially completing the right shoulder of a Head & Shoulders pattern which in nature is a bearish indicator. Look for a short entry around the neck line of 0.885 that fits your trading plan. Thanks Trade Safe **If you felt this was helpful in anyway hit the LIKE button and FOLLOW me for more analysis and educational ideas** Comment below and share your opinion on this set up.
Short
by ktlfx
1
Bitcoin's situation+next targets and expected movements.BTC has created an Inverse head and shoulder pattern which means a great bullish trend is on the Horizon. If the price follows this pattern's expected movement,we shall see it reach 40k pretty soon or at least in mid term duration. The expected movement is as much as the measured price movement (AB=CD).The break out has occurred but the confirmation candle has yet to be closed. We might even see a correction one more time before ascending further.keep in mind that the next big resistance for btc will be around 40k. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 🌍Thank you for seeing idea . Have a nice day and Good luck
Long
by CobraVanguard
39
Falling Wedge Targets Could Trigger Failed HS Targeting 7500Ethereum broke out of a falling wedge and is showing a golden cross on the 50/200 day MA (dotted), and approaching the same on the 50/200 EMA. Its falling wedge TP 1 lies right around the neckline of a Head and Shoulders pattern that we fell below during Spring of 2022, as well as the right shoulder. Falling wedge TP 2 lies just near previous ATH. Get above right shoulder to trigger failed HS, get above ATH to head to 6180 and ultimately 7500. Note - a successful HS would take Eth back to 0 on its first measured target, so which is more likely - 0 or 7500 following the swap to proof of stake?
COINBASE:ETHUSDLong
by dudebruhwhoa
HEAD & SHOULDERS PATTERN AND A LIVE EXAMPLE IN AUDJPYHead & Shoulders pattern is popularized amount traders, the H&S is one of the first patterns traders come in contact with. H&S are formed in all time frames and in all markets. Here is an example of AUDJPY trading H&S in a Daily Chart. H&S are reversals patterns, they can be trade in all times frames but i like to use the H&S in smallest time frames as Price action reversal patterns, If I were trading other pattern than H&S the H&S in M30 for example would be a signal for me telling me it worth to take a trade amounts others trading methods.
OANDA:XAUUSDEducation
by TradeChartPatternsLikeThePros
HEAD AND SHOULDERS PATTERN - TRADING GUIDE Head and Shoulders pattern This lesson will cover the following What is a “Head and Shoulders” formation? How can it be confirmed? How can it be traded? The Head and Shoulders pattern forms after an uptrend, and if confirmed, marks a trend reversal. The opposite pattern, the Inverse Head and Shoulders, therefore forms after a downtrend and marks the end of the downward price movement. As you can guess by its name, the Head and Shoulders pattern consists of three peaks – a left shoulder, a head, and a right shoulder. The head should be the highest and the two shoulders should be at least relatively of equal height. As the price corrects from each peak, the lows retreat to form the so-called neckline, which is later used for confirming the pattern. Here is what an H&S pattern looks like. Other key elements of this pattern and its trade process are the breakouts, protective stops, profit target, and volume, which is used as an additional tool to confirm the trend reversal. So here is how you identify the Head and Shoulders pattern and how its individual components are characterized. Formation and confirmation In order to have a trend reversal pattern, you definitely need a trending market. Let's talk about the first model of H&S, the Inverse or Reversal will have the same methodology but exactly in the opposite way. While prices are trending up, our future patterns left shoulder forms as a peak, which marks the high of the current trend. For the shoulder to be formed, the price then needs to correct down, retreating to a low, which is usually above or at the trend line, thus, keeping the uptrend still in force. This low marks the first point used to determine where the neckline stands. Afterward, a new higher peak begins to form, stemming from the left shoulder low, which is our pattern head. As the market makes a higher high (the head), it then corrects back and usually, this is the point where the upward trend is penetrated, thus signaling a shift in momentum and a possible Head and Shoulders pattern. The second low that is touched after the retreat from the heads peak is the other point used to build the neckline, which is basically a line drawn through the two lows. The subsequent rebound from the second low forms the third peak – the right shoulder. It should be lower than the head and overall match the height of the left shoulder (keep in mind that exact matches rarely occur). It is also preferable that the two shoulders have required relatively the same amount of time to form as this would make the pattern stronger. In order for the Head and Shoulders pattern to be confirmed, the retreat from the third peak (the right shoulder) should penetrate the neckline and a candle should close below it. The neckline itself should be horizontal in the perfect case scenario, but that rarely happens. Instead, most often it is sloping up or down and that is of significance as well – a downward-sloping neckline is more bearish than an upward-sloping one. Volume As mentioned above, volume plays a key role as a confirmation tool and can be measured via indicators or by just analyzing its levels. Presumably, volume during the left shoulder advance should be higher than during the subsequent one, because as the head hits a higher high on the base of declining volume, this serves as an early signal for a possible reverse. This, however, does not happen every time. The next step of confirmation comes when volume increases during the decline from the head's peak and the last nail in the coffin are when volume gains further during the right shoulder's decline. Trading the pattern, stops and profit targets We said earlier that the Head and Shoulders pattern is deemed confirmed if the right shoulder's decline penetrates through the neckline and a candle closes below it. As soon as that happens and you are reassured that it is not a false breakout, you can enter into a short position. However, as you already know, no trading decisions should be made on the go, i.e. you need to have predetermined where your protective stop is going to stand and what your profit target is. Protective stop There are two common places where you can place your stop loss. The first one, which is more conservative, is right above the peak of the head, while a more standard position is right beyond the right shoulder. You can see those visualized in the following screenshot. The second option makes more sense because if the breakout through the neckline actually fails and the price rebounds back with such momentum that it rises beyond the right shoulder, then the whole pattern is flawed and you definitely do not need to wait for it to exceed the head as well. Besides, such a loose stop significantly increases the risk and reduces the risk/reward ratio, thus, reducing this pattern's trading appeal. Profit target The most common and often advised profit target is the distance (number of pips) between the head's peak and the neckline. Having estimated that distance, you then need to subtract it from the neckline, just like in the screenshot below. And how does that translate in terms of risk/reward ratio? If the breakout confirmation (the close beyond the neckline) appears very close to the neckline itself, and we enter into a short position there, we generally have a 1:1 risk-to-reward proportion, if we use a conservative protective stop. Why? Since our profit target is the distance between the heads peak and the neckline, if we decide to use the conservative option for a protective stop, then we will have the same distance as a loss limit, thus, reducing our risk-to-reward ratio to 1:1. This is why, in order to improve that ratio, most experienced traders place their protective stops more often above the right shoulders peak, given that they use the head-to-neckline profit target. However, keep in mind that this price distance should serve as a rough target, because things are usually not that straightforward and other factors such as previous support levels, crossing mid-term and long-term moving averages, etc. must be taken into consideration as well. Two ways to trade the Head and Shoulders Pattern There are generally two ways to trade this pattern, depending on how it plays out. The first one we've already mentioned. As soon as a candle closes below the neckline as a sign of confirmation, you enter into a short position with the respective profit target and protective stop described above. Now for the second way to trade the H&S formation. In this case, we have a pullback after the neckline penetration, which, once support, now acts as a resistance level. This time we need to go short once the price pulls back and tests the neckline as resistance. As soon as it rebounds from the neckline, we enter into a short position, using the same principle for placing the protective stop and aiming for the same profit as in the first scenario. Here is what this would look like.
Education
by FOREXN1
1