Simple Head and Shoulder @ 4hr and 1D

18 maj 2019

First of all I know some technical trading patterns, but not all of them. I would to hear your opinions about this pattern.

On the chart, I posted 4hr time point to show the head and shoulder reversal pattern clearly. Base on the previous year, this HS pattern seems to be a strong reversal signal.

Several signals that may indicate that the price is moving downward are the exhaustion of Stoch RSI and RSI. My understanding is that Stoch RSI provide us the kinetic of the price. When the fast line crosses upside of the slow line this indicates that the price will head down. Additionally, the steepness of the slope may indicates the speed of the price movement. In this case, it seems to me that btc price might be heading down gradually.

Secondly, the RSI is inching gradually toward the oversold area. This could suggest that buyers are not interested in purchasing the price at this range. Therefore making the buyer in control of the price.

Combination of all three elements may suggests that the fuel for the uptrend is exhausting. Possibly, the price will decline lower to the support price, which i dont quite know where it may be. Best guess 6500.

Constructive comments are welcome. I have limited knowledge about the tools. However, these tools had help me make and secure some profits in the previous year and the year before that.

Thanks,

Cpt.