BTC, a history of dandruff.
Updated
H&S as an indicator vs. predictor. Zoom in for more details. Outlined some possible H&S psychological patterns. I hear this term a lot and I see it appear often on all timeframes.
In my opinion, it is hard to advise acting on this psychological pattern as the pattern forms. Hoping for the completion of a H&S pattern or basing a short/long during the formation of the possible pattern can be reckless; however, acing in hindsight on the formed or rejected patterns can serve as a powerful indicator of strength.
There are 3 H&S patterns I outline in yellow and one large H&S pattern in white. Two of the yellow H&S patterns (if the current one completes) with heads at 4475 can be utilized as local top indicators of strong resistance.
The larger scale yellow H&S pattern with the neckline at 3550 was not fully formed; however I saw many people short due to the potential pattern. Instead, waiting for confirmation of the pattern would have been a better move and acting on the pattern with hindsight would have been less risky with great rewards. With a rejection of the pattern, we saw clear bull strength taking the market to reversal territory. Had the pattern completed, excellent low risk entry positions at ~3300-3400 (or 2980-3000 if it had fully completed).
The largest (white) H&S pattern is somewhat of a joke and basing the all time top of BTC at the head of the pattern is reckless. Basing shorts/longs on the large scale pattern (although it has been mentioned) is nothing more than gambling.
These are my opinions on H&S and they can be drawn in many ways, but still serve as excellent indicators in hindsight.
Would appreciate thoughts/opinions on the use of H&S as predictors vs indicators.
In my opinion, it is hard to advise acting on this psychological pattern as the pattern forms. Hoping for the completion of a H&S pattern or basing a short/long during the formation of the possible pattern can be reckless; however, acing in hindsight on the formed or rejected patterns can serve as a powerful indicator of strength.
There are 3 H&S patterns I outline in yellow and one large H&S pattern in white. Two of the yellow H&S patterns (if the current one completes) with heads at 4475 can be utilized as local top indicators of strong resistance.
The larger scale yellow H&S pattern with the neckline at 3550 was not fully formed; however I saw many people short due to the potential pattern. Instead, waiting for confirmation of the pattern would have been a better move and acting on the pattern with hindsight would have been less risky with great rewards. With a rejection of the pattern, we saw clear bull strength taking the market to reversal territory. Had the pattern completed, excellent low risk entry positions at ~3300-3400 (or 2980-3000 if it had fully completed).
The largest (white) H&S pattern is somewhat of a joke and basing the all time top of BTC at the head of the pattern is reckless. Basing shorts/longs on the large scale pattern (although it has been mentioned) is nothing more than gambling.
These are my opinions on H&S and they can be drawn in many ways, but still serve as excellent indicators in hindsight.
Would appreciate thoughts/opinions on the use of H&S as predictors vs indicators.
Note
LOL at anyone who actually used the large scale H&S to set longs and shorts. As I said above, the white H&S was only a joke and due to its scale a ridiculous pattern of which to base decisions.
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