What is Head & Shoulders Patterns in Bitcoin Trading?
Trading Identify a Head and Shoulders Pattern in Bitcoin Trading
The Best Patterns Guide for Beginner Traders - How to Identify and Trade Head & Shoulders Bitcoin Chart Pattern
BTCUSD Crypto Currency Patterns for Day Trading - Bitcoin Patterns Explained
This Head and Shoulders patterns charts tutorial explains how to identify cryptocurrency chart patterns - identifying cryptocurrency patterns is the first step when it comes to learning how to bitcoin trade with Head & Shoulders chart patterns in Bitcoin.
Head & Shoulders bitcoin price patterns commonly form on Bitcoin charts and this pattern analysis tutorial explains how to trade & analyze crypto charts using Head & Shoulders chart patterns.
Head & Shoulders Bitcoin Pattern
Head and Shoulders Bitcoin Pattern is a reversal bitcoin pattern which forms after an extended Bitcoin Trading upwards trend. Head & Shoulders Bitcoin Pattern is made up of three consecutive peaks, the left shoulder, the head & the right shoulder with two moderate troughs between the shoulders.
This Head and Shoulders Bitcoin Pattern 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 chart pattern.
To go short, BTCUSD Crypto Currency traders place their sell stop btcusd crypto currency orders just below the neck line.
Summary:
- This Head and Shoulders Bitcoin Chart Pattern forms after an extended move upwards
- This Head and Shoulders Bitcoin Pattern formation indicates that there'll be a reversal in btcusd market
- This Head and Shoulders Bitcoin Chart Pattern formation resembles head with shoulders thus its name.
- To draw the neck-line we use chart point 1 and point 2 as shown 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.
What is Head & Shoulders Patterns in Bitcoin Trading?
Or the head & shoulders cryptocurrency setup also can form on a sloping neck line, like the example illustrated below:
Trading Cryptocurrency Identify a Head and Shoulders Pattern in Crypto Trading?
Example of Head & Shoulders Pattern on a Trading Chart
Trading Crypto Identify a Head & Shoulders Pattern in Crypto Trading?
This Head and Shoulders Bitcoin Chart Pattern also can be formed on a sloping neckline, like the one above, the neck line does not have to be necessarily horizontal.
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