What Happens to Crypto Price Action After a Head and Shoulders Bitcoin Chart Pattern?
Head & Shoulders Bitcoin Pattern is a reversal cryptocurrency pattern that forms after an extended Bitcoin Trading upwards trend.
Head & Shoulders Bitcoin Pattern is made up of 3 consecutive peaks, the left shoulder, the head & the right shoulder with 2 moderate troughs between the two shoulders.
To open a sell bitcoin trade after this head and shoulders reversal bitcoin trading signal, Bitcoin traders place their sell stop bitcoin orders just below the neckline.
Summary:
- This Head and Shoulders Bitcoin Chart Pattern forms after an extended move upward - bitcoin upwards trend
- This Head and Shoulders Bitcoin Pattern formation indicates that there will be a reversal in btcusd trading market
- This Head and Shoulders Bitcoin Pattern formation looks like a head with shoulders thus its name.
- To draw the neckline we use chart point 1 & point 2 as illustrated on the cryptocurrency trading example illustrated below. We also extend this line in both directions.
- We sell when bitcoin trading price breaks-out below neck line: as described on the cryptocurrency trading example illustrated below.
What Happens to Crypto Price Action After a Head and Shoulders Crypto Chart Pattern in Crypto Trading?
Or the head & shoulders cryptocurrency chart pattern can also form on a slanting neck line, like the cryptocurrency trading example illustrated below:
What Happens to Crypto Price Action After a Head and Shoulders Crypto Chart Pattern in Crypto Trading?
Examples of Head & Shoulders Bitcoin Pattern on a Bitcoin Chart
How to Analyze the Head and Shoulders Crypto Chart Pattern
This Head and Shoulders Bitcoin Pattern can also be formed on a slanting neck line, like the head & shoulders cryptocurrency pattern example above, the neckline doesn't have to be necessarily horizontal.
