What Happens to Crypto Price Action After a Head and Shoulders Bitcoin Chart Pattern?
Head & Shoulders Bitcoin Pattern is a reversal cryptocurrency pattern setup that forms after an extended Bitcoin Trading up-wards trend.
Head & Shoulders Bitcoin Pattern is made up of three consecutive peaks, the left shoulder, the head & the right shoulder with 2 moderate troughs between the two shoulders.
To open a sell bitcoin trade after this head and shoulders reversal bitcoin trading signal, BTCUSD Crypto traders place their sell stop btcusd crypto orders just below the neckline.
Summary:
- This Head and Shoulders Bitcoin Chart Pattern forms after an extended move upward - bitcoin upwards trend
- This Head and Shoulders Bitcoin Pattern formation indicates that there will be a reversal in btcusd trading market
- This Head and Shoulders Bitcoin Pattern formation looks like a head with shoulders thus its name.
- To draw the neckline we use point 1 & point 2 as illustrated on the trading example illustrated below. We also extend this line in both directions.
- We sell when bitcoin trading price breaks-out below neck line: as described on the trading example illustrated below.
What Happens to Cryptocurrency Price Action After a Head and Shoulders Pattern in Crypto Trading?
Or the head and shoulders chart pattern can also form on a sloping neck-line, like the trading example illustrated below:
What Happens to Crypto Price Action After a Head & Shoulders Chart Pattern in Crypto Trading?
Example of Head & Shoulders Bitcoin Pattern on a Bitcoin Chart
How Do I Analyze the Head and Shoulders Pattern
This Head and Shoulders Bitcoin Pattern also can be formed on a sloping neck line, like the head & shoulders cryptocurrency pattern example above, the neck-line does not have to be necessarily horizontal.
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