I've been reporting for a few days a H&S pattern on Bitcoin and Rejections that have confirmed on a Bearish Trendline
Obviously, this is found on many altcoins and forks such as Bitcoin Cash
I take this opportunity to add a simple analysis of transaction volumes, here on Kraken chosen for its (alleged) absence of wash-trading, but similar on other exchanges: we have the bulk of the volume on the left shoulder and the head, with a steady decrease in volume for the right shoulder, typical of the Head & Shoulders patterns!
Now you have to confirm the breakout under the Neckline that I have drawn for you, and if that happens, the bearish target of about $ 260 is the height of the Head from the Neck line.
Good trades to all... under your sole responsibility, stop loss and risk management in support
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Sorry for the omission of translation on the volumes graph:
1) Rule: "The highest volume is seen during the Left Shoulder or possibly at the Head of the H&S pattern"
I take this opportunity to recall two anothers rules established on volumes:
2) "Each phase of decline must suffer a decrease in volumes" 3) "Each phase of increase must be marked by a peak volume" ... and this is clearly the case (my 3 circles), this H&S is healthy and compliant
Operación activa
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Note, on my initial chart on the right, that the transaction volumes stabilize. But they are at their lowest.
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Still waiting for a clear and unambiguous bullish signal "that breaks the resistance" ...