BTC Long, Setting Targets with the H&S Pattern
Potential Head and Shoulder Bottom pattern forming:
Pattern checklist:
Price Trend- down leading to pattern (+)
Shape- 3 valley pattern with middle valley below the others (+)
Symmetry- two shoulders should be near the same price (+, ->6300), same distance from head (-, not really, right shoulder about 7 days from head whereas left is bout 3 days)
Volume- should be highest on left shoulder, diminished on right shoulder (possibly, too early to tell)
Confirmation- when price breaks upward through neckline (6800)
Target- compute height from head low to neckline (1000) and multiply it by percentage meeting price target (74%) and add it to the breakout price (6800) = approx $7540
(all pattern info from thepatternsite.com)
R/R= 2.51
(risk/reward ratio)
fyi, because I'm not convinced about the symmetry or the R/R, I'm going to scale the entries on this one between the current shoulder at 6300 (.5 fib) and the .786 fib.
Pattern checklist:
Price Trend- down leading to pattern (+)
Shape- 3 valley pattern with middle valley below the others (+)
Symmetry- two shoulders should be near the same price (+, ->6300), same distance from head (-, not really, right shoulder about 7 days from head whereas left is bout 3 days)
Volume- should be highest on left shoulder, diminished on right shoulder (possibly, too early to tell)
Confirmation- when price breaks upward through neckline (6800)
Target- compute height from head low to neckline (1000) and multiply it by percentage meeting price target (74%) and add it to the breakout price (6800) = approx $7540
(all pattern info from thepatternsite.com)
R/R= 2.51
(risk/reward ratio)
fyi, because I'm not convinced about the symmetry or the R/R, I'm going to scale the entries on this one between the current shoulder at 6300 (.5 fib) and the .786 fib.
Nota
I'm still overall bearish, fyi. The spread between longs and shorts will add more fuel to the next move down. If this pattern plays out we may get a lot of late longs piling on then and we can finally get to our capitulation.Trade attivo
.705 OTE was my heaviest buy and snagged perfectly.Nota
pulled up stops. closed one long here to preserve some profit in case we re-test support. since risk is now zero on open positions and pattern is confirmed, will add to positions on next re-test of support.Trade chiuso: obiettivo raggiunto
no re-test of support, target reached.looking bullish for the next few days/weeks, but this trade has concluded.
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