This pattern is associated with a reversal of a downward trend in price. A head and shoulders pattern is a bearish indicator that appears on a chart as a set of 3 troughs and peaks, with the center peak a head above 2 shoulders. After long bearish trends, the price falls to a trough and subsequently rises to form a peak. After this, price breaks the neckline resistance and starts to rally. In terms of the projected price, it is the measured distance from the head to the neckline, projected upwa […]
The fall in price from the right shoulder to a point lower than the previous low point now gives us a reason to call it a downtrend – there are two lower highs, the head and the shoulder, and two lower lows. What is called the neckline, connecting the low points either side of the head, now will often provide resistance, as shown, to the next rise in price. If the reversal is strong, the price may not even get back up to the neckline. The reversal is counted is taking place as soon as the price […]
If the reversal is strong, the price may not even get back up to the neckline. The reversal is counted is taking place as soon as the price drops through the neckline, as it would otherwise be a sideways trend. On crypto forums and social media, a great number of traders are discussing a CME Bitcoin futures gap that could send BTC spot prices back to that region. A futures gap typically occurs when spot prices continue to trend upwards, while the CME derivatives market is closed.
Alternately, s […]