Trade Bitcoin Trading

Reversal Bitcoin Chart Patterns: Head and Shoulders & Reverse Head Shoulders

Head and shoulders Bitcoin Chart Pattern

This is a reversal bitcoin trading pattern which forms after an extended Bitcoin upwards crypto trend. It's made up of three consecutive peaks, the left shoulder, head & the right shoulder with 2 moderate troughs between the shoulders.

This bitcoin setup is considered complete once bitcoin price penetrates and moves below the neck line, which is drawn by joining the two troughs in between the shoulders pattern setup.

To go short, Bitcoin traders place their sell stop bitcoin orders just below the neck line.

Summary:

  • This Bitcoin pattern forms after an extended move upward
  • This formation indicates that there will be a reversal in btcusd cryptocurrency trading market
  • This formation resembles head with shoulders thus its name.
  • To draw the neckline we use chart point 1 and point 2 as displayed below. We also extend this line in both directions.
  • We sell when bitcoin price breaks out below neck-line: see the chart below for explanation.

Reversal Bitcoin Chart Setups - What is Bitcoin Reversal Patterns?

Or the head & shoulders also can form on a sloping neck line, like the cryptocurrency example illustrated below:

Slanting Head and Shoulder Bitcoin Pattern - What is Reversal Chart Setups?

Example of Head and Shoulders Pattern on a Trading Chart

Example of Head and Shoulders Setup on a Bitcoin Chart - What is Bitcoin Reversal Patterns?

Head and Shoulders Pattern

This cryptocurrency setup can also be formed on a sloping neck line, like the one above, the neck-line does not have to be necessarily horizontal.

Reverse Head and Shoulders BTCUSD Setup

This is a reversal head & shoulders pattern which forms after an extended Bitcoin downward bitcoin trend. It resembles an upside down head shoulders.

This bitcoin setup is considered complete once bitcoin price penetrates above the neck-line, which's drawn by connecting these two peaks between the reverse shoulders pattern.

To go long buyers place their buy stop bitcoin orders just above the neck line.

Summary:

  • This Bitcoin pattern forms after an extended move downwards
  • This formation indicates that there will be a reversal in btcusd cryptocurrency trading market
  • This formation resembles upside-down, thus the name Reverse.
  • We buy when bitcoin price breaks out above the neck-line: see the chart below for explanation.

How to Trade Reverse Head and Shoulders Bitcoin Chart Setup - What is Reversal Chart Patterns?

Example of Reverse Head & Shoulders Pattern on a Bitcoin Chart

Reverse Head & Shoulders Bitcoin Chart Setup in Bitcoin - What's Bitcoin Reversal Chart Patterns?

Example of Reverse Head & Shoulders Pattern

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