H&S Bottom: Double Bust (ETH)
Updated
The inverted head and shoulders pattern failed.
All is well, as we have Thomas Bulkowski's history of patterns & statistical setups to guide us along together.
Ethereum has already invalidated the single bust.
It is time to explore the Double Bust IH&S chart pattern, & look for these elements:
A double busted head-and-shoulders bottom turns into a triple bust when the rise after the second bust is no more than 10% and price then closes below the bottom of the chart pattern.
Busted Inverted Head-and-Shoulders Historical Performance:
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Confirmation of Single Bust Invalidation:
All is well, as we have Thomas Bulkowski's history of patterns & statistical setups to guide us along together.
Ethereum has already invalidated the single bust.
It is time to explore the Double Bust IH&S chart pattern, & look for these elements:
- Price must confirm the head-and-shoulders bottom by closing above the neckline or right armpit (A).
- Price rises no more than 10% before reversing.
- Price closes below the bottom of the chart pattern (B). This busts the pattern for the first time.
- Price drops no more than 10% below the bottom of the head-and-shoulders bottom.
- Price closes above the top of the head-and-shoulders bottom. This busts the chart pattern for the second time (C).
- The stock rises more than 10% above the top of the head-and-shoulders bottom.
A double busted head-and-shoulders bottom turns into a triple bust when the rise after the second bust is no more than 10% and price then closes below the bottom of the chart pattern.
Busted Inverted Head-and-Shoulders Historical Performance:
- 16% of head-and-shoulders bottoms will bust
- Of those that bust...47% will single bust
- 36% will double bust
- 17% of them will triple bust
- Single busted patterns will see price drop 22% on average (invalidated)
- Non-busted head-and-shoulders bottoms (that is, head-and-shoulders tops) will see price drop by 16% on average
If you have related analysis please be sure to share so we can learn together!
Confirmation of Single Bust Invalidation:
- Price must confirm the head-and-shoulders bottom by closing above the neckline (down sloping necklines) or above the right armpit. That occurs at (A) in the figure above.
- Price must rise no more than 10% above the neckline.
- Price then closes below the bottom of the head-and-shoulders bottom (B).
- Price continues dropping more than 10% without closing above the top of the head-and-shoulders.
Note
Ironically it looks like it may just be a simple single bust after all
Note
-9% we are looking at the breakdown of a single bustNote
Note
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