Head and Shoulders Cryptocurrency Chart Pattern

Head & Shoulders Bitcoin Chart Pattern Reversal Trading Signals

This is an upwards bitcoin trend reversal bitcoin trading pattern which forms after an extended Bitcoin Trading upwards cryptocurrency trend. It's made up of three consecutive peaks, the left shoulder, head and the right shoulder with two moderate troughs between the shoulders.

This reversal trading strategy pattern is considered complete once bitcoin price penetrates below the neckline, which is drawn by joining the two troughs in between the shoulders chart pattern.

This reversal cryptocurrency signal is confirmed once bitcoin prices moves below the neckline

Summary:

• This reversal strategy pattern forms after an extended move upwards
• This reversal strategy pattern indicates that there will be a reversal in btcusd trading market
• This reversal strategy pattern resembles head with shoulders thus its name.
• To draw the neckline we use chart point 1 & point 2 as shown below. We also extend this line in both directions.
• We sell when bitcoin price breaks below the neckline: as explained below:

Head and shoulders reversal strategy pattern can also form on a slanting neck line, like the cryptocurrency trading example illustrated below:

Crypto Upward Trend Reversal Strategy - Head & shoulders Crypto Chart Pattern

Crypto Upward Trend Reversal Strategy - Head & shoulders Crypto Chart Pattern

This reversal trading strategy pattern can also be formed on a slanting neckline, like the one above, neckline doesn't have to be necessarily horizontal.