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Reversal Patterns Head and Shoulders and Inverse Head and Shoulders

Head & Shoulders Reversal Pattern

The Head & Shoulders Chart Pattern is a reversal pattern that materializes following a sustained upward trajectory in the BTC USD Crypto Currency price. It consists of three sequential peaks - the left shoulder, the head, and the right shoulder - separated by two moderate valleys between these structural peaks.

This Head and Shoulders Reversal Pattern is considered complete once the price penetrates below the neck line, which is drawn by joining the two troughs in between the shoulders pattern.

To go short, Bitcoin traders set their sell stop orders just below neckline.

Summary:Head and Shoulders Reversal Pattern forms after an extended move upwards

This reversal setup formation demonstrates that there will be a reversal in market price

This formation looks like head with shoulders thus its name.

To plot the neckline we use point 1 and point 2 like is shown below. We also extend the line in both directions.

We sell when the price of Bitcoin breaks below the neckline: see the chart below for an explanation.

Trading Bitcoin Reversal Setups - Head and Shoulders Bitcoin Reversal Pattern

Or the head & shoulders also can form on a sloping neckline, like the illustration revealed below:

Crypto Reversal Patterns - Head and Shoulders Bitcoin Reversal Chart Setup and Pattern

Example of Head and Shoulder Pattern on a Bitcoin Price Chart

Trading Head and Shoulder Bitcoin Reversal Pattern - Head and Shoulders Bitcoin Chart Setup Analysis

Head and Shoulder Pattern - Bitcoin Trading

Example 2: Head and Shoulders BTCUSD Pattern

Trading Bitcoin Reversal Head and Shoulder Pattern - Head and Shoulder Chart Setup in Crypto Described

Head and Shoulder Pattern - BTCUSD Trading

This reversal pattern also can be formed on a sloping neck line, like the one above, the neck line does not have to be necessarily horizontal.

Reverse Head and Shoulders Reversal Pattern

This is a reversal head and shoulders chart pattern that forms after an extended Bitcoin downwards trend. It resembles an upside-down head & shoulders pattern.

This Head and Shoulders Reversal Pattern is considered complete once the price penetrates above the neckline, which is drawn by joining the two peaks between the reverse head and shoulders pattern.

To go long buyers/bulls set their buy stop pending orders just above the neck-line.

Summary:Reverse Head & Shoulders Chart Pattern forms after an extended move downwards

This formation shows that there will be a reversal in market price trend

This formation resembles an upside-down head & shoulders pattern, thus its name Inverse Head and Shoulder Pattern.

We buy when price breaks above the neck line: see the chart below for an explanation.

Trading Bitcoin Reversal Patterns - Reverse Head & Shoulders Bitcoin Setup and Pattern

Reverse Head and Shoulder Pattern - BTCUSD Crypto trading

Example of Reverse Head and Shoulders Chart Pattern on a BTC USD Price Chart

Trading Bitcoin Inverse Head and Shoulder Reversal Pattern - Reverse Head and Shoulders Chart Setup Analysis

Reverse Head and Shoulder Pattern - Bitcoin Trading

Step2: Reverse Head and Shoulder Pattern - Bitcoin Trading

Trading Inverse Head and Shoulders Bitcoin Reversal Setup - Reverse Head and Shoulder Bitcoin Pattern Explained

Reverse Head and Shoulder Pattern - BTCUSD Trading

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