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Inverse Head and Shoulders

Coinbase Textbook Bottoming Pattern Found Hi Guys! This is a Technical Analysis of Coinbase (COIN) on the 1 week timeframe. As you can see we have drawn out a Inverse Head & Shoulder Pattern forming in COIN. This is a textbook pattern as it follows to the t the necessary criteria both in price action and volume. Stages of the Price Action Downtrend to form Left Shoulder The rally from Left Shoulder does not breach the Neckline Downtrend from peak of rally to form Head The rally from the Head also does not breach the Neckline Downtrend from Peak of rally to form Right Shoulder The rally from the Right Shoulder breaches the Neckline A Return move from the breakout back to Neckline -> This stage we are currently playing out Volume Signs of Textbook Inverse Head & Shoulder 1. Left Shoulder has taller volume bar (higher volume) than Head Volume 2. Lighter volume or shorter bars seen for Head than Left Shoulder 3. The rally from Head to Right Shoulder has increasing volume that exceeds volume of the rally from left shoulder to neckline 4. DOwntrend to Right Shoulder -> shows a declining volume bar height / declining volume 5. Sharp Spike on Volume during rally from Right Shoulder to Neckline breakout 6. Declining Volume during current move, the Return Move Thoughts: Both times we rallied from the shoulders we reached a Resistance zone and got rejected. I believe we are currently in the "Return Move" to test the Neckline as Support -> The areas i am looking is: 1. 0.5 FIB Level, this is also where the 21 EMA converges so a Support zone to watch This area is important because it is the "Golden Zone" for FIB, as well as where the 21 EMA is at. This makes this area a place to observe for potential bounce. Though i believe this to be short lived. 2. Testing Support on the NECKLINE SUPPORT line 3. This one is least likely but nevertheless still possible, the 0.382 FIB Level, a potential scenario being a WICK down from testing support on Neckline After testing these levels i believe that Coinbase will start its Bull run where it has tremendous growth in market cap A first target would be breaching the Resistance zone and confirming it as Support. Take a look for yourself. Experts let me know what yall think! Stay tuned for more updates on COIN in the near future. Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again. If you have any questions, do reach out. Thank you again. DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.
NASDAQ:COINLong
by SafofAllTrades
2
Beyond Meat Bottom Pattern Formation SpottedHi Guys! This is a Technical Analysis on Beyond Meat (BYND) on the 3 Day Timeframe. I believe we are in the process of forming an Inverse Head & Shoulders Pattern. Currently in the process of solidfying the Right Shoulder. Which i believe will/ can take couple weeks to form before rallying past neckline. So far every part of this pattern has been textbook. SUCH THAT -> Every part of the Head & Shoulders that formed, the VOLUME has reacted a specific way. Stages of the Price Action 1. Downtrend to form Left Shoulder 2. The rally from Left Shoulder does not breach the Neckline 3. Downtrend from peak of rally to form Head 4. The rally from the Head also does not breach the Neckline 5. Downtrend from Peak of Head rally to form Right Shoulder 6. The rally from the Right Shoulder breaches and moves above the Neckline 7. A Return move from the breakout back to Neckline 8. Test of Support and a bounce from here going above the peak of Right Shoulder Rally So far we've hit Stages 1-4. We are currently in the process of forming the Right Shoulder and completing stage 5. We need to pay attention on the completion of the Right Shoulder and the next stages of the Inverse Head & Shoulder, particularly this next potential RALLY. It MUST Breach and move above the NECKLINE. Volume Signs of Textbook Inverse Head & Shoulder 1. Left Shoulder has taller volume bar (higher volume) than Head Volume 2. Lighter volume or shorter bars seen for Head than Left Shoulder 3. The rally from Head has increasing volume that exceeds volume of the rally from left shoulder to neckline 4. Downtrend to Right Shoulder -> shows a declining volume bar height / declining volume After the formation of the Right shoulder we need to see: 1. Sharp Spike on Volume during rally from Right Shoulder to Neckline breakout 2. Declining Volume during the Return Move So far so good. And we need to continue to pay attention to make sure all the criteria is being hit. Now targets for Right Shoulder Rally, is hard to tell. BUT the previous rallies could not pass the RED RESISTANCE ZONE. So im thinking we can move into it but we dont get ABOVE it. We need to watch the VOLUME -> there has to be a sharp spike on volume during this rally. __________________________________________________________________________________ Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again. Stay tuned for more updates on BYND in the near future. If you have any questions, do reach out. Thank you again. DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy
NASDAQ:BYND
by SafofAllTrades
3
How to Head and ShouldersGreetings, Financial Enthusiasts! 🌟 If you appreciate our charts, give us a quick 💜💜 The Head and Shoulders pattern is a well-known chart formation in technical analysis. It indicates a reversal from a bullish to a bearish trend, usually at the end of an upward trend. Key Points: - Head and Shoulders: Chart pattern signaling trend reversal. - Formation: Three peaks on a baseline - two lower outer peaks and a higher middle peak. - Bullish to Bearish: Suggests a shift from an upward trend to a downward one. - Applicability: Seen on all timeframes, suitable for various traders and investors. - Entry Levels: Easily identifiable, aiding in trade implementation. Why It Matters: The Head and Shoulders pattern provides traders with a visual representation of a trend reversal. It's widely used due to its simplicity and applicability across different timeframes. The Pattern: - Formation (Market Tops): 1. Left Shoulder: Price rises, forms a peak, then falls. 2. Head: Price rises again, forming a higher peak. 3. Right Shoulder: Price falls again, then rises but forms a lower peak than the head. - Formation (Market Bottoms): 1. Left Shoulder: Price falls, forms a trough, then rises. 2. Head: Price falls again, forming a lower trough. 3. Right Shoulder: Price rises again, then falls, forming a higher trough than the head. Neckline: - For Market Tops: Connect the low after the left shoulder to the low following the head to create the neckline. - For Market Bottoms: Connect the high after the left shoulder to the high after the head to form the neckline. Trading the Pattern: - Wait for the pattern to complete before trading. - Entry when price breaks below the neckline (tops) or above it (bottoms). - Stops placed above the right shoulder (tops) or below it (bottoms). - Profit targets calculated based on the head-to-shoulder difference and added (bottoms) or subtracted (tops) from the breakout level. Why It Works: - Sellers enter as price falls from its peak, reducing aggressive buying. - The neckline marks a point where traders exit positions, driving price toward the target. - A lower right shoulder (tops) or higher right shoulder (bottoms) signals a trend shift. - Profit target assumes forced exits by those in losing positions. - The neckline prompts many traders to exit, pushing price towards the target. - Volume analysis helps confirm patterns; expanding volume (bottoms) shows increased buying interest. Pitfalls: - Waiting for pattern completion may require patience. - Not all patterns lead to successful trades. - Profit targets aren't always reached. - External events can disrupt patterns. - Patterns can be subjective; traders should define their criteria. The Head and Shoulders pattern, though not foolproof, provides a structured approach to identify and act on trend reversals.
Education
by Vestinda
21
Inver Head and Shoulders for PlugNASDAQ:PLUG is one of the stocks that have been sold heavily in August and September. The price action shows consolidation. There is a potential inverse H&S in play. The initial target is 10. If we can break the down trend, this can fly towards 18. Disclaimer – WhaleGambit. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis , like all indicators, strategies, columns, articles and other features accessible on/though this site is for informational purposes only and should not be construed as investment advice by you. Your use of the technical analysis , as would also your use of all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
NASDAQ:PLUGLong
by WhaleGambit
Bitcoin - This week 10% pump or 10% dump! (BREAKOUT) This week is going to be huge! We have this head and shoulders pattern that is ready for a massive breakout. I give it a 70% chance of breaking down and a 30% chance of breaking out of this pattern. The most important thing is to let me know in the comment section what you think about this upcoming crash or pump! Up or down? Bitcoin is on the road to 20k and potentially 15k later this year if this pattern breaks down, so for the bulls, it's important to defend this support and start a new uptrend from here. As you probably already know from my previous ideas, September is the worst month for Bitcoin, with an average negative return. That means the price of Bitcoin usually goes down in September. This is a statistical fact, but of course it's not a guarantee. It's likely for Bitcoin to go down based on historical data. The halving event in April next year is still too far away, so you cannot rely on it. Most likely, we are going to find the bottom on Bitcoin in March 2024. This is a quick update on the price of Bitcoin. I always give you a complete outlook for Bitcoin to stay updated on all time frames. From monthly to hourly. Make sure you follow me so you do not miss out on my next update! We all know that the price of Bitcoin can sometimes become very boring when it's stuck in a range and volatility is at its historical minimum. But it is how it is, and that's why if you are a crypto trader, you can trade altcoins as well for diversification purposes. This analysis is not a trade setup; there is no stop-loss, entry point, profit target, expected duration of the trade, risk-to-reward ratio, or timing. I share my trades transparently and post trade setups privately. Thank you, and for more ideas, hit "Like" and "Follow"!
BITSTAMP:BTCUSDShort
by UnknownUnicorn2537518
147
Indian Oil: % years Inverse Head and Shoulder BreakoutIOC has been in an Inverted H&S pattern formation since March 2018 which it completed in July 2023. Inverted H&S patterns often implicate a bullish run post pattern breakout and they become crucial specially when the pattern is in formation phase for dew years. IOC replicates a similar view and the stock has given a breakout in May 2023. The run still continues supported with high crude oil prices as well. With a long term view the stock seems to go upto 129 levels in few months from now. (Given the pattern is observed in monthly chart)
NSE:IOCLong
by chandakpulkit
Bitcoin - Secret patterns for professional traders! The price of Bitcoin is forming a head and shoulders pattern inside this descending parallel channel! Both of these patterns are bearish, so the probability of going down is really high at this moment. To become bullish, Bitcoin needs to invalidate both patterns. Then we can think about a long position, but at this moment, not at all! You probably want to trade with a trend, and the trend is bearish on this particular timeframe. But in the immediate short term, we could go up to form the right shoulder of the major pattern; of course, that would be an excellent opportunity to short bitcoin at a great price! Where is the profit target for the big short? I already market it on the chart, and it's between 23064 and 22853 because it is the POC of the previous expanding triangle + 1:1 FIB extension (wave 3 -> 4). As per my Elliott Wave analysis, last week we printed a new impulse wave, which is very clear and visible. Everything in confluence suggests that we are bearish, and continuation of the downtrend is extremely likely and almost definitely a guarantee. Sooner or later, we will break the support of 25k.  This is my outlook on BTC for this month; do not forget to let me know in the comment section what you think about it and if you are prepared for another crash. I need to know your opinion! This analysis is not a trade setup; there is no stop-loss, entry point, profit target, expected duration of the trade, risk-to-reward ratio, or timing. I share my trades transparently and post trade setups privately. Thank you, and for more ideas, hit "Like" and "Follow"!
Short
by UnknownUnicorn2537518
91
MLI -- longFor full disclosure I've been a long time holder of MLI. I love this company for its fundamental strength: They are a market leading, cost-advantaged provider of copper and brass tubing, fittings, and valves for the construction and HVACR markets. The company repaid all its long-term debt a couple of years ago, and has diligently expanded and upgraded its manufacturing facilities. They have modest capex requirements, and have delivered positive annual cash flow every year since 1992. While the 40%+ ROIC margin for 2022 was due to last year's unique environment (exceptional demand for building supply, high copper price, material shortages), they should easily out-earn their WACC year after year. The company trades at a very modest 11.1x next year EPS (based on a single analyst's estimate). The stock took a huge beating following its earnings release, due to events beyond management's control: The business was impacted by lower copper prices, a tornado destroyed one of its manufacturing locations, and two separate factory fires (one of them caused by a third-party contractor) also impacted production. More recently, though, MLI is showing signs of bottoming out. On the 1-hr chart an inverse head-and-shoulders pattern has emerged, and the stock looks set to break out from its declining short-term trading channel. There's also a bullish Black Swan pattern visible on the chart (patterns and channels drawn using @LonesomeTheBlue's fabuluous indicators). I don't usually pay much attention to Black Swan patterns but, according to the HPP indicator, for this ticker/aggregation period Black Swans sport an impressive win rate and profit factor. I am looking to add to my long position with a T1 at the 3-month POC line (around 81). SL would be at the VWAP since the August 21 low.
NYSE:MLILong
by matthias
Bitcoin - Bull trap of the year! (fake pump) Bitcoin pumped significantly, but it's definitely a bull trap, so do not fall for it! We can see that the chart is printing a huge head and shoulders pattern, which is a very bearish sign. This pattern is not confirmed yet as the neckline is holding, but the price is below the major blue trendline, which increases the probability of a breakdown! The trend is not bullish anymore, and this pump is a great opportunity to short Bitcoin. Where to take profit or buy bitcoin? I strongly recommend the 0.618 FIB retracement in confluence with the CME unfilled GAP. This is an extremely strong support, and we should see the start of a new bull market or at least a significant bounce from it! I don't know about you, but I am bearish! Let me know in the comment section: are you bullish or bearish? I want to know your opinion! Altcoins don't look good at all. I can see a huge crash on DOGE (70%). This indicates to me that Bitcoin is still not ready for a bull market. This analysis is not a trade setup; there is no stop-loss, entry point, profit target, expected duration of the trade, risk-to-reward ratio, or timing. I share my trades transparently and post trade setups privately. Thank you, and for more ideas, hit "Like" and "Follow"!
Short
by UnknownUnicorn2537518
192
EQT- Going LongAfter being shorted to the N'th degree, and finally breaking out of the downwards channel EQT has been holding, EQT is seemingly consolidating here within a symmetrical triangle, as buyers continue to step in. After breaking out of the downtrend, EQT has formed an inverse head and shoulders on the daily timeframe, along with finding support right in the FIB golden pocket, accompanied by a SMA golden cross. (See Attached Chart Below) Will be keeping a close eye on the daily timeframe to start building a position in some synthetic longs and/or leaps. Bullish and am looking for another push upwards from here.
NYSE:EQTLong
by jacobosiason7
one of the my stock now India exporting goods to other country one of the cheapest transportation media is water base so now our government working on ports developments. so keep it watch list Gujarat Pipavav Port is India's first private sector port located on the south west coast of Gujarat near Bhavnagar. The port is strategically placed to on International Maritime Trade route which connects India with US, Europe, Africa, Middle East on one side and Far east on the other side. stock break resistance level of 120 and now this level work as support stock may move 150 level with this support. 115 take as support may move 150+ volume in stock also good weakly charts are study two round pattern showing stock accumulation are going in stock. fundamental analysis stock at low PE level compare to 3,5,10 year PE. means that stock under value ROCE 19.6% & ROE 15% ZERO DEBT COMPANY current & quick ratio are above 3.5% good dividend payer share holding pattern pramoter 44% FII & DI 43%+ NO RECOMMENDATION FOR BUY AND SELL
NSE:GPPLLong
by investigationofchart
Breakout stock life time High Weakly chart 1) Life time High working as resistance for the stock but now breakout at 228-230 level. 2) Channel pattern follow and now breakout. 3) Higher high and higher low formation. 4) 2018 and channel pattern breakout with High valume 5) global market in down but this stock breaking life time High so the have potential to create new life time High 6) stock may be take advantage of government development just resently announced by PM Modi 7) keep stop loss of 175-180 8) my Target to be 500 is the sentiments resistance 9) risk reward fit 1:6 10) 50SMA 170 this can be considered for stop loss 11) SMA 100 152 12) SMA 200 98 NO RECOMMENDATION FOR BUY OR SELL
NSE:BIRLACABLELong
by investigationofchart