XRPUSD HELD DOWN BUT AN IMPENDING TEST OF SOME RESISTANCE AHEAD
XRPUSD has gradually maintained its price move below the $0.40579.
On the 4hours time frame price has move horizontally without breaking the resistance mentioned above and at the same time has formed a chart pattern called THE HEAD&SHOULDER BOTTOM.
Head-and-shoulders bottoms are reliable chart patterns that sport a low failure rate and good average rise.
Price trend downward leading to the pattern, the Shape looks more like a 3-valley pattern with the middle valley below the others. The pattern should look like an inverted person's head and shoulders, proportional, and not lopsided. The two shoulders should bottom near the same price, be nearly the same distance from the head, and look similar (both wide or both narrow), if this doesn't show up then a lower left shoulder valley when compared to the right shoulder valley results in best postbreakout performance.
Volume presented should be highest on the left shoulder or head, diminished on the right shoulder. Trends downward 65% of the time.
The pattern confirms as a valid one when price closes above a down-sloping neckline or above the right armpit when the neckline slopes upward.
A breakout from the neckline will confirm the move up to meet the first target. Always wait for price to break out from the neckline and close above it.
VERDICT:
BUY: $0.41160
SELL: $0.43865 up to $0.52701
STOP LOSS: $0.34912
Remember TECHNICAL ANALYSIS is all about probabilities and based on previous market performance(not all about certainty)
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.
On the 4hours time frame price has move horizontally without breaking the resistance mentioned above and at the same time has formed a chart pattern called THE HEAD&SHOULDER BOTTOM.
Head-and-shoulders bottoms are reliable chart patterns that sport a low failure rate and good average rise.
Price trend downward leading to the pattern, the Shape looks more like a 3-valley pattern with the middle valley below the others. The pattern should look like an inverted person's head and shoulders, proportional, and not lopsided. The two shoulders should bottom near the same price, be nearly the same distance from the head, and look similar (both wide or both narrow), if this doesn't show up then a lower left shoulder valley when compared to the right shoulder valley results in best postbreakout performance.
Volume presented should be highest on the left shoulder or head, diminished on the right shoulder. Trends downward 65% of the time.
The pattern confirms as a valid one when price closes above a down-sloping neckline or above the right armpit when the neckline slopes upward.
A breakout from the neckline will confirm the move up to meet the first target. Always wait for price to break out from the neckline and close above it.
VERDICT:
BUY: $0.41160
SELL: $0.43865 up to $0.52701
STOP LOSS: $0.34912
Remember TECHNICAL ANALYSIS is all about probabilities and based on previous market performance(not all about certainty)
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.
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