Ahoy everyone!
Yesterday the market dropped back to the major support and resistance level where it managed to bounce off fiercely. Also 0.618 fibonacci level was located in this area which I posted about in my twitter account earlier.
I just want to say that I have the best followers and I have received such a great feed back from you guys. Thank you for that!
Anyways, the market is showing a huge potential inverse head & shoulders pattern. As long as it manages to hold major s/r level this pattern is valid.
I have reminded my followers quite often how important volume expansion is in this pattern. I want to highlight two important things that should be monitored and gives more validity for this pattern's formation:
1) When the price reaches bottom of the head and it starts raising, this where we should see volume expanding (in this scenario you can see it has done so).
2) This maybe the most important part of this pattern. When right shoulder starts forming we should see increased volume towards the neckline/resistance area.
These two are major things to follow and pay attention to when a market is forming inverse head & shoulders pattern.
Last time when Bitcoin started to form inverse head & shoulders pattern I wrote about how it's going to fail because back then the right shoulder was missing the volume expansion which key element to watch for.
Trade safely and if you have any questions feel free to ask them down below!
DISCLAIMER:
Please be aware this is not financial advice. You are responsible for your trading and investing decisions. It is highly recommended to do your own research before investing in anything.
Yarr
Yesterday the market dropped back to the major support and resistance level where it managed to bounce off fiercely. Also 0.618 fibonacci level was located in this area which I posted about in my twitter account earlier.
I just want to say that I have the best followers and I have received such a great feed back from you guys. Thank you for that!
Anyways, the market is showing a huge potential inverse head & shoulders pattern. As long as it manages to hold major s/r level this pattern is valid.
I have reminded my followers quite often how important volume expansion is in this pattern. I want to highlight two important things that should be monitored and gives more validity for this pattern's formation:
1) When the price reaches bottom of the head and it starts raising, this where we should see volume expanding (in this scenario you can see it has done so).
2) This maybe the most important part of this pattern. When right shoulder starts forming we should see increased volume towards the neckline/resistance area.
These two are major things to follow and pay attention to when a market is forming inverse head & shoulders pattern.
Last time when Bitcoin started to form inverse head & shoulders pattern I wrote about how it's going to fail because back then the right shoulder was missing the volume expansion which key element to watch for.
Trade safely and if you have any questions feel free to ask them down below!
DISCLAIMER:
Please be aware this is not financial advice. You are responsible for your trading and investing decisions. It is highly recommended to do your own research before investing in anything.
Yarr
