What Happens to Crypto Price Action After a Head & Shoulders Bitcoin Setup?
Head and Shoulders Bitcoin Pattern is a reversal cryptocurrency pattern setup that forms after an extended Bitcoin Trading up-wards trend.
Head and Shoulders Bitcoin Pattern is made up of 3 consecutive peaks, the left shoulder, the head and the right shoulder with 2 moderate troughs in between the 2 shoulders.
To open a sell bitcoin trade after this head & shoulders reversal bitcoin trading signal, BTCUSD CryptoCurrency traders place their sell stop bitcoin crypto orders just below the neckline.
Summary:
- This Head & Shoulders Bitcoin Chart Setup forms after an extended move upward - bitcoin upwards trend
- This Head & Shoulders Bitcoin Pattern setup indicates that there will be a reversal in btcusd trading market
- This Head & Shoulders Bitcoin Pattern looks like a head with shoulders thus its title.
- To draw the neckline we use point 1 & point 2 like as shown on the 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 trading example illustrated below.
What Happens to CryptoCurrency Price Action After a Head Shoulder Chart Pattern Setup in Crypto Trading?
Or the head and shoulders chart pattern can also form on a sloping neck-line, like the example illustrated below:
What Happens to Crypto Price Action After a Head and Shoulders Pattern Setup in Crypto Trading?
Example of Head and Shoulders Bitcoin Pattern on a Bitcoin Chart
How Do I Analyze the Head and Shoulders Chart Setup
This Head & Shoulders Bitcoin Pattern also can be formed on a sloping neck line, like the head & shoulders cryptocurrency pattern exemplification put on display above, the neck-line does not have to be necessarily horizontal.
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