Polygon Peaks | Head & Should Pattern (Correction Explained)

20 févr.

Polygon (MATICUSDT) is now preparing for a lower low.

Three peaks in succession is a common top signal and many people read it as Head & Shoulders, but truly as long as three peaks show up it can signal that a reversal is about to take place. It also works at support.

➖ The first peak happened in November.
➖ The second peak December 2023.
➖ The third and last peak happened February 2024.

The third peak is a lower high compared to Dec., coupled with decreasing volume.

The peak was hit yesterday so it is early for this move.
The down wave can take several months to fully develop.

Some pairs will retrace for a few days at maximum while others will do it for 1-3 weeks. The big ones and those that grew really strong can enter a corrective phase and move down for months. Bitcoin for example can move lower for 4-6 months... This is a possibility that I am starting to see.

On the other hand, we can have a flash crash and everything is over within three weeks... For this, we have to wait and see.

What we do know for certain is that the market tends to correct after a long period of growth.

2023 was the recovery year and 2024 the bull-market.
The correction will set the stage for the next major bull-market.

Namaste.