VET - Inverted head and shoulders
Updated
Hello, thank you for taking the time to read through my post. I would like to discuss here some technical ideas related to VeChain.
As you already know, VeChain is gradually forming a bottom. This floor is in the form of a Classic Price Pattern called "Inverted Head and Shoulders". This pattern is often found at important reversal points and is therefore a sign of a trend reversal. The upper black line is the resistance, but also the so-called "Neckline". To confirm an Inv H&S we would need a clearly defined breakout above this line. We cannot say when this time will be, but we can use technical indicators to uncover the story. I would like to discuss with you the TRIX indicator.
Short intro to TRIX:
The TRIX is a Triple Smoothed Average line, also known as the Triple Smoothing Exponential Moving Average or EMA. It can be used both as an oscillator fluctuating around its zero line, called Triple Exponential Smoothing Oscillator, and as a momentum indicator. In accordance with the nature of moving averages, the TRIX is a smoothed indicator that filters out false signals. The TRIX indicator achieves the best results in clearly trending markets.
So by definiton this indicator is a help to filter false signals. As you can see here, the TRIX is now very close to the 0 line and tries to break it from the bottom to the top, which could be a very good signal for an uptrend.
So my idea: If the TRIX pushes above the 0 line, that will drive the price to resistance line and when that happens, our classic price pattern will be confirmed.
So keep your eyes open and your ears stiff,
until next time my friends,
Kami
As you already know, VeChain is gradually forming a bottom. This floor is in the form of a Classic Price Pattern called "Inverted Head and Shoulders". This pattern is often found at important reversal points and is therefore a sign of a trend reversal. The upper black line is the resistance, but also the so-called "Neckline". To confirm an Inv H&S we would need a clearly defined breakout above this line. We cannot say when this time will be, but we can use technical indicators to uncover the story. I would like to discuss with you the TRIX indicator.
Short intro to TRIX:
The TRIX is a Triple Smoothed Average line, also known as the Triple Smoothing Exponential Moving Average or EMA. It can be used both as an oscillator fluctuating around its zero line, called Triple Exponential Smoothing Oscillator, and as a momentum indicator. In accordance with the nature of moving averages, the TRIX is a smoothed indicator that filters out false signals. The TRIX indicator achieves the best results in clearly trending markets.
So by definiton this indicator is a help to filter false signals. As you can see here, the TRIX is now very close to the 0 line and tries to break it from the bottom to the top, which could be a very good signal for an uptrend.
So my idea: If the TRIX pushes above the 0 line, that will drive the price to resistance line and when that happens, our classic price pattern will be confirmed.
So keep your eyes open and your ears stiff,
until next time my friends,
Kami
Note
Other indicator used on this chart; EMA 200 & 50 The symmetry line is the line that should hold in order to keep a perfect inv h&s, every break below that, puts the chart pattern into question.
Note
With the clear break below the symmetry line, we cannot say that its an inverted head and shoulders anymore. We will look for price development and what the future has to offer for us.
KSC
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