Trade Bitcoin Trading

Reversal Bitcoin Setups: Head ==22==and Shoulders and Inverse Head and Shoulder

Head and shoulders Bitcoin Setup

This is a reversal pattern which forms after an extended BTCUSD upwards crypto trend. ==22==It--isIt'sIt--is made up of 3 consecutive peaks, the left shoulder, head & the right shoulder with 2 moderate troughs between these shoulders pattern.

This bitcoin setup is considered complete once bitcoin price penetrates and moves below the neck-line, which is drawn by joining the two troughs in between the shoulders pattern formation.

To go short, Bitcoin traders place their sell stop bitcoin orders just below the neck-line.

Summary:

  • This Bitcoin pattern forms after an extended move upward
  • This formation shows that there will be a reversal in btcusd cryptocurrency trading market
  • This setup looks like head with shoulders thus its name.
  • To draw the neckline we use chart point 1 & point 2 such as displayed and shown below. We also extend the line in both directions.
  • We sell when bitcoin price breaks out below neck-line: see the chart below for explanation.

Reversal Bitcoin Chart Setups - What is Bitcoin Reversal Patterns?

Or the head & shoulders also can form on a sloping neck line, like the cryptocurrency example illustrated below:

Slanting Head and Shoulder Bitcoin Pattern - What is Reversal Chart Setups?

Example of Head and Shoulder Pattern Setup on Chart

Example of Head ==22==and Shoulders Setup on a Bitcoin Chart - What is Bitcoin Reversal Patterns?

Head and Shoulders Chart Pattern

This crypto setup can also be formed on a sloping neck line, like the one above, the neck-line doesn't have to be necessarily horizontal.

Reverse Head and Shoulders BTCUSD Setup

This is a reversal head & shoulders pattern which forms after an extended Bitcoin downward bitcoin trend. It resembles an up side down head shoulders.

This bitcoin setup is considered complete once bitcoin price penetrates above the neck-line, which's drawn by connecting/joining the 2 peaks between the reverse shoulders pattern.

To go long buyers place their buy stop bitcoin orders just above the neck line.

Summary:

  • This Bitcoin pattern forms after an extended move downwards
  • This setup shows that there will be a reversal in btcusd cryptocurrency trading market
  • This formation looks like up-side-down, thus the name Reverse.
  • We buy when bitcoin price breaks out above the neck-line: see the chart below for explanation.

How to Trade Inverse Head ==22==and Shoulders Bitcoin Setup - What is Reversal Patterns?

Example of Reverse Head Shoulder Pattern on a Bitcoin Chart

Reverse Head ==22==& Shoulders Bitcoin Chart Setup in Bitcoin - What's Bitcoin Reversal Patterns?

Example of Reverse Head Shoulders Pattern

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