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Shoulders

H&S Pattern appears to have been triggered on XRPIt seems the head and shoulders pattern has been triggered. We are currently at a potential support zone on the 1 day charts 200ma(not shown here) If we can bounce there or at least before the horizontal aqua colored line shown here it will be a very good sign because we will have simply formed a higher low but if we were to reach the projected drop target of the head and shoulders pattern breakdown we would definitely be forming a lower low. Anyone who didn't already get out of their position or short when the 4hr volume indicated the head&shoulders was triggering I would say to wait and see if the 1 day 200ma support fails and even whether or not the priceaction dips below the aqua trendline before shorting at this point you don't wanna fall victim to buying the bottom of this dip.
Short
by DrDovetail
A Bearish and Bullish case for XRPThis idea will be listed neutral because while we still have the very bullish and valid Symmetrical triangle here we have also developed a head and shoulder pattern which is currently now threatening to break the neckline of. Many head and shoulder patterns become fakeouts though so if it is the case that this head and shoulder pattern is a fakeout as well I think that will highly increase the probability of the symmetrical breaking upward like continuation patterns are known to do...Keep a close eye on the head and shoulder pattern though because if it does trigger not only will it initially have the drop target I've posted here in red, but it will also trigger a breakdown of the symmetrical triangle pattern which can dip it the height of the triangle. Do not buy into the head and shoulder pattern prematurely even with it dipping below the neckline best to hodl until we see a bear volume surge to confirm the breakdown. If we break upward the bullish breakout price target is also listed here in green.
by DrDovetail
1
XRP might trigger a 4hr h&s pattern; watch for volume to confirmit currently has broken the neckline of a 4hr head and shoulder pattern on the 4 hour chart so it may follow this candle up if it closes below the neckline with a confirmation candle + bear volume that could take us potentially as low as this projected target. Best to wait for this current 4hr candle to close and also to see what the followup candle does before making the decision to short. Also watch for a surge in bear volume too. It is very probable that this pattern will be triggered for a few reasons. 1. Buy the rumor sell the news of xrapid going live. Selling the news is a standard trick for a majority of traders and it would be no big shock to see them once again use that method here. 2. the daily RSI has been in bad need of a cool off ever since the initial bull surge 3. we are currently below the neckline and it is the first red candle that has broken the bottom trendline support of the ascending bull pennant. So probability does favor a breakdown here. However I think the breakdown will be very temporary and that we will hopefully see good bounce support on the 1 day chart from the 200 ma (represented here as the horizontal dotted tan line) and we should see a good enough bounce to get the price action back inside the ascending triangle pattern to avoid triggering a bart breakdown from the bear flag. We may even throw a wick down below the 1 day 200 ma to hit the drop down target of the 4 hr head and shoulders pattern but ultimately find good support on the 1 day 200ma and bounce back up and into the ascending triangle pattern before triggering the bull flags breakdown resulting in a bear trap fakeout. Just my opinion of course I could be wrong so financial advice this should not be taken as. Thanks for reading!
Short
by DrDovetail
4
Inv H&S Breakout confirmed but may not surpass 100maTHe projected breakout is posted here just under 6.7k. At first that seemed like it would clearly allow it to surpass both the 4hr 50ma(in orange) and 100ma(in blue). However the way the 100ma is now starting to tilt upwards could prove to allow it to maintain resistance and get above the projected target price before the price action reaches it....the 4hr death cross is now solidly in effect and would tak a lot more bullish action to reverse. It's possible but until I see the price action surpass the 100ma and both flip the 100ma from resistance to support and solidify that support...than I have to anticipate that the 100ma will provide some solid resistance especially now that the 4hr rsi is nearing oversold levels. Of course still very possible we can get more bullish action to come. For now I'm still neutral but right when the inv head and shoulders was confirmed I was long to the projected target.
BITFINEX:BTCUSD
by DrDovetail
4hr death cross occurred + inv h&s still valid= wait 4 the breakThe 4hr death cross has occurred, however priceaction still hasn't chosen a direction. The inverted head an shoulders is still very much valid. Gonna have to wait for a clear break one way or the other and hodl int he meantime or if you sold sodl. If it continues to simply ove sideways all month somehow then we may very well be experiencing the purgatory phase that occurs right before the follow up bull run. For now, Neutral.
BITFINEX:BTCUSD
by DrDovetail
5
Inverted h&s break out target of 7230 hit. Higher high achieved!Usually right after we hit a higher high we see a lower high and while I think considering we are still finding resistance at the much larger/longer inverted head and shoulder neckline we will likely dip down for another higher low here. before we finally break the neckline of the larger inv h&s. I think odds are good if we see that higher low form that we will most certainly trigger the 1 week charts descending triangle pattern...if so we will be bullish in a very big way as long as we can stay above the 1 day charts 50ma like we have been continuing to do we should trigger that breakout. Very hopeful for what Q4 might brig in btc.
BITFINEX:BTCUSDLong
by DrDovetail
Ugliest inverted h&s I've ever seen but technically still valid.After one of the most massive bullish 4hr volume candles we've seen in a long while, We shot all the way back up to the neckline of the inverted head and shoulder pattern that never quite got invalidated but is now looking rather ugly. Had I been watching the charts when this bullish volume spike occured and saw the rejection I would have exited at the neckline as a very safe spot to then buy back in a few pips above it if it breaks out or accumulate a little more whenever it finds a resting place after getting rejected but I was unfortunately preoccupied with other things and wasn't watching the charts. Either way because of just how massive that volume candle is I have a feeling up will be the path we ultimately head. If this turns out not to be the case and we break down from here I will be prepared and may ladder out small portions but I am optimistic we will hopefully be heading up or sideways at least. The RSI on the 4hr seems to suggest we are reaching the overbought zone but I ahve yet to look at it on the 1 day chart.
BITFINEX:BTCUSDLong
by DrDovetail
Right shoulder of inverted h&s forming smaller h&s patternNot sure which way this will break but its very important to be aware of the current smaller head and shoulder forming inside the right shoulder of the inverted head and shoulder pattern...the drop target for the this smaller h&s pattern is not enough to invalidate the inverted h&s but there is always a chance for it to fall well past the drop target. Definitely something to keep an eye on. The RSI + stochrsi on the daily, 4hr, and hourly should help give us some indication of which way is more likely. As well as any bullish or bearish divergences.
BITFINEX:BTCUSD
by DrDovetail