CriptoCracken
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Bearish
#WLD🔥🔥🔥 . What is a Head and Shoulders (H&S)?
It is a bearish reversal pattern that generally appears at the end of an uptrend and indicates a possible downward reversal. It consists of three peaks:
Left Shoulder: a moderate peak followed by a correction.
Head: a peak higher than the shoulders, followed by a new correction.
Right Shoulder: another moderate peak, similar to the left one.
2. Parts of the pattern in the image
Previous Trend: before the H&S, there is a clear uptrend, which validates the context for this pattern to make sense.
Left Shoulder: a momentum is seen with moderate volume, followed by a drop that forms a "valley."
Head: the price exceeds the previous peak with more strength but does not hold; after reaching a maximum, it falls again.
Right Shoulder: the attempt to rise again does not exceed the head level. It is generally accompanied by less volume, showing weakness in buyers.
Neckline: it is the line that connects the two valleys between the shoulders and the head. It can be horizontal or sloped. The breakout of this line with strong volume is the definitive signal for a possible bearish movement.
3. Confirmation of the pattern
The breakout of the neckline is key. If the price closes below with significant volume, the pattern is activated.
Price Target: it is calculated by measuring the distance from the head to the neckline and projecting it downward from the breakout point.
4. CriptoCracken Style
CriptoCracken is a classic trader of chart analysis. His charts tend to be clean, sober, and technical, focusing on:
Clarity of the pattern.
Volume to confirm the movement.
Price projections based on structures.
It is a bearish reversal pattern that generally appears at the end of an uptrend and indicates a possible downward reversal. It consists of three peaks:
Left Shoulder: a moderate peak followed by a correction.
Head: a peak higher than the shoulders, followed by a new correction.
Right Shoulder: another moderate peak, similar to the left one.
2. Parts of the pattern in the image
Previous Trend: before the H&S, there is a clear uptrend, which validates the context for this pattern to make sense.
Left Shoulder: a momentum is seen with moderate volume, followed by a drop that forms a "valley."
Head: the price exceeds the previous peak with more strength but does not hold; after reaching a maximum, it falls again.
Right Shoulder: the attempt to rise again does not exceed the head level. It is generally accompanied by less volume, showing weakness in buyers.
Neckline: it is the line that connects the two valleys between the shoulders and the head. It can be horizontal or sloped. The breakout of this line with strong volume is the definitive signal for a possible bearish movement.
3. Confirmation of the pattern
The breakout of the neckline is key. If the price closes below with significant volume, the pattern is activated.
Price Target: it is calculated by measuring the distance from the head to the neckline and projecting it downward from the breakout point.
4. CriptoCracken Style
CriptoCracken is a classic trader of chart analysis. His charts tend to be clean, sober, and technical, focusing on:
Clarity of the pattern.
Volume to confirm the movement.
Price projections based on structures.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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