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Head and Shoulders

Decoding the VIX Crab Head and Shoulders.The formation of the butterfly pattern mentioned in the previous idea is quite intriguing! As we discussed before, the VIX index level of 28-29 is as a crucial threshold for our Crab strategy. Currently, we are witnessing the development of a head and shoulders pattern within this butterfly formation, which adds an exciting layer to our analysis. It's fascinating to see how these technical indicators can guide our trading decisions, and I hope you're as enthusiastic about this potential opportunity as I am! Let's keep an eye on these patterns and see how they unfold in the coming days.
CAPITALCOM:VIX
by SEYED98
DIXON – Complex H & S Pattern Formed – Bearish Outlook📉 DIXON – Complex Head & Shoulders Pattern Formed – Bearish Outlook Timeframe: 15-minute chart Date: May 5, 2025 🔍 Chart Pattern Observed: DIXON has formed a Complex Head and Shoulders (H&S) pattern, which is typically a trend reversal pattern. This specific setup consists of: Two Left Shoulders (LS#1 and LS#2) One Central Head Two Right Shoulders (RS#1 and RS#2) This complexity often adds higher reliability to the pattern due to multiple retests of key resistance zones. 📊 Technical View: The neckline of the H&S pattern has been tested multiple times. Currently, the price is hovering near the end of Right Shoulder #2, which suggests the possibility of a near-term top. A break below the neckline with strong volume could trigger a sharp downside move. 📉 Bearish Scenario Projection: Once the neckline is decisively broken, downside targets could extend toward the ₹15,000–₹14,600 zone. This matches the height of the head projected downward from the neckline. 🛑 Risk Management: Invalidated if price closes strongly above ₹16,900, breaching RS#2 high. Watch for breakdown confirmation with volume spike and bearish follow-through candles. 🔔 Conclusion: DIXON shows signs of exhaustion after a strong uptrend and has printed a reliable complex reversal pattern. Traders should watch for confirmation below neckline support to initiate short positions. Be patient and wait for a clear trigger to avoid premature entries. 📌 Disclaimer: This analysis is for educational purposes only and does not constitute trading or investment advice. Always consult your financial advisor before making any trading decisions.
NSE:DIXONShort
by shiva560060
3
Be careful with buying USDJPY!!!Hello traders this is a trade that almost everyone sees it coming but it is too good to be true. We have a clear breakout of this downtrend. An inverted head and shoulders some might say cup and handle. A lot of ppl (including me) are going to put their SL inside this zone but that can be dangerous I recommend taking a better entry or just leaving this trade bcz it is too risky. Do not be a victim of FOMO. Lets wait for the bounce first then we will secure our position that is all I am saying and do not simply enter after the trendline touches the trendline because this might be a very strong downtrend.
Long
by Linkhive001
NVIDIA 1D — When “Head & Shoulders” Aren’t Just for the GymOn the daily chart, NVDA has broken out of the descending channel and reclaimed the 50-day moving average (MA50), triggering a classic inverted head and shoulders formation. Price is now holding above the key $113–$114.50 zone, confirming a structural shift. As volume picks up, buyers are eyeing the next levels of resistance. Near-term upside targets: – $119.80 (0.5 Fibonacci) – $127.62 (0.382) – $137.28 (0.236) — primary resistance zone – Extended target — $152.91 (1.0 Fibonacci projection) Technical setup: — Breakout from channel + above MA50 — Inverted head and shoulders pattern completed — $114.50–$118.00 now acts as buyer support — EMA and MA convergence supports trend reversal — Increasing volume on rallies supports bullish momentum Fundamentals: NVIDIA remains the AI and semiconductor sector leader. Growing demand for high-performance GPUs in AI and data centers positions NVDA as a core tech play. Expectations of strong earnings and continued institutional accumulation support the bullish narrative. The confirmed breakout and inverted H&S setup mark a clear structural reversal. As long as price stays above $114.50, the path toward $127–$137 remains the primary target zone, with $152.91 in sight if momentum continues.
NASDAQ:NVDALong
by TotoshkaTrades
3
Ethereum's $2k Crossroads: Squeeze Up or Crash Down?Ethereum at a Crossroads: Eyeing $2,000 Amidst Short Squeeze Hopes, Crash Warnings, and Existential Questions Ethereum (ETH), the bedrock of decentralized finance (DeFi) and the engine behind countless non-fungible tokens (NFTs), finds itself ensnared in a complex web of conflicting market signals and divergent analyst opinions. On one hand, recent price action shows resilience, with ETH powering through previous resistance levels and setting its sights on the psychologically significant $2,000 mark. This move is potentially bolstered by intriguing on-chain data, such as declining supply on major exchanges like Binance, sparking whispers of an impending short squeeze. Yet, casting a long shadow over this optimism are stark warnings: technical analysts point to rare, potentially bearish patterns forming, prominent trading firms question its fundamental value proposition compared to Bitcoin (BTC), highlighting its staggering year-to-date losses, and some even provocatively label it more akin to a "memecoin." This cacophony of bullish hopes and bearish alerts places Ethereum at a critical juncture. Is the recent surge the beginning of a sustained recovery, fueled by tightening supply and renewed developer activity? Or is it merely a deceptive bounce within a larger downtrend, vulnerable to a potential crash as underlying weaknesses and unfavorable comparisons to Bitcoin take hold? Dissecting these opposing narratives is crucial for understanding the intense battleground Ethereum's price chart has become. The Bullish Ascent: Powering Through Resistance, Eyeing $2,000 The immediate catalyst for renewed optimism stems from Ethereum's recent price performance. After a period of consolidation and, at times, significant downward pressure, ETH has demonstrated notable strength. Headlines proclaiming "Ethereum Price Powers Through Resistance — Eyes on $2,000?" capture this sentiment. Breaking through previously established resistance levels (potentially building on support found around the $1,800 mark) is a technically significant event. It suggests buyers are stepping in with enough conviction to overcome selling pressure that had previously capped advances. Successfully reclaiming and holding levels above former resistance transforms these zones into potential new support floors, providing a base for further upward movement. The $2,000 level looms large, not just as a round number, but often as a key area of historical price interaction – a zone where significant buying or selling interest has previously materialized. A decisive break above $2,000 could inject further confidence into the market, potentially attracting momentum traders and reinforcing the bullish narrative. The Binance Supply Drop and Short Squeeze Speculation Adding intrigue to the bullish case is the observation of declining Ether supply on major exchanges, specifically Binance. Exchange supply is a closely watched metric. When the amount of ETH held on exchanges decreases, it generally implies that investors are withdrawing their coins to private wallets, often for longer-term holding ("HODLing") or for use within the DeFi ecosystem (staking, lending, etc.). This reduction in readily available supply on exchanges can, in theory, create a tighter market. This dynamic fuels speculation about a potential "short squeeze." A short squeeze occurs when the price of an asset starts to rise rapidly, forcing traders who had bet against it (short sellers) to buy back the asset to close their positions and cut their losses. This forced buying adds further upward pressure on the price, creating a rapid, cascading effect. If a significant number of traders have shorted ETH, anticipating further price declines, a sustained move upwards coupled with shrinking exchange supply could create the conditions for such a squeeze, dramatically accelerating the price towards and potentially beyond the $2,000 target. While short squeezes are relatively rare and difficult to predict accurately, the declining supply on a major platform like Binance certainly adds a compelling element to the bullish thesis. Underlying Strengths: The Long-Term Vision Beyond short-term price action and supply dynamics, Ethereum's bulls point to its fundamental strengths. The successful transition to Proof-of-Stake (PoS) via "The Merge" was a monumental technical achievement, drastically reducing the network's energy consumption and changing its tokenomics by potentially making ETH a deflationary asset under certain conditions (where more ETH is "burned" via transaction fees than is issued as staking rewards). Ongoing scalability upgrades, often referred to under the umbrella of Ethereum 2.0 developments (like proto-danksharding via EIP-4844), aim to reduce transaction fees and increase throughput, making the network more efficient and attractive for developers and users. Ethereum remains the dominant platform for smart contracts, DeFi applications, and NFT marketplaces. Its vast developer community, established network effects, and continuous innovation pipeline are often cited as core long-term value drivers that short-term price volatility cannot erase. For believers in Ethereum's vision, the current price levels, even after the recent bounce, might represent an opportunity to accumulate an asset with significant future potential. The Bearish Counter-Narrative: Red Alerts and Worrying Comparisons However, the optimism is heavily tempered by significant bearish signals and critiques. This serves as a stark warning. Technical analysis involves studying chart patterns and indicators to forecast future price movements. While the specific "rare pattern" isn't detailed, the emergence of such signals often causes significant concern among traders. Patterns like head-and-shoulders tops, descending triangles, or bearish divergences on key indicators can suggest that upward momentum is waning and a significant price decline could be imminent. Such technical warnings cannot be easily dismissed, especially when they align with other concerning factors. The Stark Reality: Underperformance and the "Memecoin" Jab Perhaps the most damaging critique comes from the direct comparison with Bitcoin and the assessment of Ethereum's recent performance. A large year-to-date drop is a brutal statistic, especially when Bitcoin, while also volatile, may have fared comparatively better during the same period (depending on the exact timeframe and BTC's own fluctuations). Why the "memecoin" comparison? Memecoins are typically characterized by extreme volatility, price movements driven largely by social media hype and sentiment rather than clear fundamental value, and a lack of a distinct, widely accepted use case beyond speculation. While some calling Ethereum a memecoin is hyperbolic – given its vast ecosystem and utility – the critique likely stems from its recent high volatility and its struggle to maintain value relative to Bitcoin. The trading firm's assertion that Ether's "risk-reward is now unjustifiable compared to Bitcoin" encapsulates this view. They likely argue that Bitcoin's clearer narrative as a potential store of value or "digital gold," potentially bolstered by institutional adoption via ETFs, offers a more compelling investment case with potentially less downside risk compared to Ethereum, which faces ongoing scalability challenges, competition from other Layer 1 blockchains, and perhaps greater regulatory uncertainty regarding its status (security vs. commodity). This underperformance raises difficult questions. If Ethereum is the backbone of Web3, why has its price struggled so much relative to its peers or even its own potential? Possible contributing factors include: 1. Capital Rotation: The excitement and capital inflows surrounding spot Bitcoin ETFs may have drawn investment away from Ethereum and other altcoins. 2. Regulatory Uncertainty: Ongoing debates, particularly in the US, about whether ETH should be classified as a security could be creating hesitancy among institutional investors. 3. Competition: Numerous alternative Layer 1 blockchains (Solana, Avalanche, etc.) are competing fiercely for developers and users, potentially fragmenting the market share Ethereum once dominated. 4. Post-Merge Narrative Shift: While technically successful, the immediate post-Merge price action was underwhelming for many, and the narrative focus may have shifted elsewhere. Synthesizing the Dichotomy: A Market Divided Ethereum's current situation is a textbook example of a market grappling with deeply conflicting data points and narratives. • Bullish Signals: Price breaking resistance, targeting $2k, falling exchange supply, potential short squeeze, ongoing network development, strong ecosystem. • Bearish Signals: Severe YTD underperformance, concerning technical patterns ("red alert"), critical comparisons to Bitcoin's risk/reward, being labeled "memecoin-like" by traders, regulatory overhang, Layer 1 competition. This dichotomy creates significant uncertainty. Is the falling supply on Binance a sign of HODLer conviction paving the way for a short squeeze, or simply users moving assets to DeFi protocols, with little bearing on immediate price direction? Is the push towards $2,000 the start of a real trend reversal, or a bull trap set by bearish technical patterns? Is Ethereum's fundamental value being overlooked amidst short-term noise, or are the critiques about its risk/reward profile relative to Bitcoin valid warnings? Investor Sentiment and Key Factors to Watch This environment fosters polarized investor sentiment. Optimists see a buying opportunity, focusing on the recent strength and long-term potential. Pessimists see confirmation of underlying weakness and prepare for further declines. The path forward will likely be determined by several key factors: 1. Bitcoin's Trajectory: As the market leader, Bitcoin's price action heavily influences the broader crypto market, including Ethereum. Continued strength in BTC could provide a tailwind for ETH. 2. Technical Levels: Whether ETH can decisively breach and hold $2,000, or if it gets rejected, will be a critical short-term indicator. Equally important is whether current support levels hold during any pullbacks. 3. Exchange Flows & On-Chain Data: Continued monitoring of exchange supply, staking activity, and transaction volumes will provide clues about investor behavior. 4. Regulatory Developments: Any clarification on Ethereum's regulatory status, particularly in the US, could significantly impact sentiment. 5. Macroeconomic Environment: Broader market risk appetite, influenced by inflation, interest rates, and economic growth prospects, will continue to play a role. Conclusion: Navigating Ethereum's Uncertain Path Ethereum stands at a precarious crossroads. The recent climb towards $2,000, supported by encouraging signs like falling exchange supply, offers a glimmer of hope for bulls anticipating a recovery and perhaps even a short squeeze. However, this optimism is aggressively challenged by alarming technical warnings, significant underperformance compared to market expectations and Bitcoin, and pointed critiques questioning its current investment viability. The "memecoin" comparison, while harsh, reflects a genuine frustration and concern among some market observers about ETH's volatility and perceived lack of decisive direction relative to the "digital gold" narrative solidifying around Bitcoin. The formation of rare bearish patterns adds a layer of technical urgency to these concerns. Ultimately, the market remains deeply divided on Ethereum's immediate future. The battle between the potential for a supply-driven squeeze towards $2,000 and the risk of a pattern-induced crash is palpable. Investors must weigh the platform's undeniable long-term technological significance and ecosystem strength against the immediate headwinds of poor recent performance, regulatory ambiguity, and concerning technical signals. The coming weeks are likely to be crucial in determining whether Ethereum can overcome the prevailing skepticism and validate the recent bullish momentum, or if the bears will regain control, confirming the warnings of a continued downturn. The price action around the $2,000 level will be a key battleground in this ongoing struggle. Disclaimer: The information presented in this article is for informational and educational purposes only. It is based on the analysis of the provided headlines and general market knowledge. It does not constitute financial advice. Investing in cryptocurrencies involves significant risk, including the potential loss of principal. Readers should conduct their own thorough research and consult with a qualified financial advisor before making any investment decisions.
COINBASE:ETHUSDShort
by bryandowningqln
4
Mega Cap Tech Setting a Head & Shoulders – Breadth Collapse IncoICEUS:NYFANG (FANG+) is showing a textbook Head & Shoulders pattern — Left Shoulder, Head, and a freshly printed Right Shoulder. The setup becomes even more concerning when you combine it with the Nasdaq Oscillator, which just printed an identical spike to the one that marked the 2024 top. 🧠 Here's the backdrop: Netflix, Meta, Google, and Microsoft have already had their post-earnings moonshots. Tonight it’s Amazon and Apple — the last two horses in the race (Nvidia is still weeks away). Breadth is collapsing — this rally is being carried by fewer and fewer names. 📉 Breakdown below the neckline could mean: 🔻 –25% correction (minimum) 🚨 Potential –50% wipeout if the neckline fails
ICEUS:NYFANGShort
by SmartSignalss
Bitcoin Remains King, But Altcoins Face Potential Ruin.Although forecasts of Bitcoin reaching astronomical levels have cooled, its role as the foundation of the cryptocurrency ecosystem remains steadfast. Bitcoin continues to demonstrate resilience and stability, serving as the digital gold standard in an increasingly volatile market. However, a starkly different picture emerges for many Altcoins. The classic "Head and Shoulders" pattern, a bearish technical indicator, is becoming increasingly prevalent, suggesting a potential decline or even extinction for a significant portion of the Altcoin market. Investors need to proceed with caution and strategic foresight.Diversification and a focus on established projects like Bitcoin are paramount in mitigating risk. Understanding technical analysis and market trends is crucial to navigating the complex and ever-evolving crypto landscape. Don't let the lure of quick gains blind you to the fundamental principles of sound investment. Choose stability, choose resilience. SEYED.
CRYPTOCAP:BTC.D
by SEYED98
8
Natural Gas: Right Shoulder Formation Before Next Sell Order.Our previous analysis accurately predicted the gas market sell-off, allowing us to align with sellers and identify the neckline of a significant head and shoulders pattern. Now, we're tracking a potential buying opportunity, anticipating the completion of the pattern's right shoulder. Join us as we target defined profit objectives #1 and #2. Once these targets are achieved, we'll be ready to shift gears and realign with sellers, maximizing your portfolio's performance through Candlestick Pattern analysis and proactive positioning.
FXOPEN:XNGUSD
by SEYED98
$BTC Huge Daily Close Above the .618 Fib !Very BIG Daily Close for ₿itcoin above the .618 Fib 🥵 CRYPTOCAP:BTC needs to close the next week in or above the green box demand area in order to keep the rally alive and flip resistance into support. As I originally mentioned in my idea, PA either needs to correct accordingly or this is the long-awaited PARABOLA in the making. I still stand with my original belief on how this will play out, and have numbered my ideas accordingly. 1. Correct to 200DMA 2. Correct to 50DMA 3. Inverse Head and Shoulders reversal pattern 4. PARABOLA 🚀 I hope it's time to MOON more than anyone! but I still have a good chunk of cash on the sideline in case the market needs more time 🤓
BITSTAMP:BTCUSD
by jonnieking
Deutsche Bank AG to 21 EuroDespite the chaos with Credit Suisse European banks in General are printing some excellent setups. What is the reason for this? No idea. On the above 2-month chart: 1) A strong buy signal (not shown) prints with price action breakout from resistance that has been active since 2007. 2) Regular bullish divergence. No less than eight oscillators this time. Four to five oscillators printing on this time frame is incredibly powerful but eight?! 3) Inverse head and shoulders pattern. Confirmation is price action closing above 10.50 and staying there or above for a week or two. On confirmation a target of 21 euro should be expected. 4) The yellow line is the 21/2-month EMA. Notice the first attempt to hold as support has failed? (Orange arrow). This was the first attempt to hold as support since July 2005. Confirmation of support is price action at 10.50 and above by the month of May. 5) Almost EVERY idea on tradingview is 'short' / Bearish! Ww is the 5%. What in? Is it possible price action falls further? Sure. Is it probable? No. Ww Type: Investment Risk: <=6% of portfolio Timeframe: Don’t know. Return: 110% Stop loss: 7.20
XETR:DBKLong
by without_worries
6
Stock: SQ Weekly Long Opportunity – Head and Shoulders with RDOverview: This weekly chart for Block, Inc. presents a high-potential buy opportunity. A well-defined Head and Shoulders pattern is forming, indicating a likely trend reversal. I’m waiting for a confirmed breakout above the Neckline for entry. Technical Insights: The MACD shows regular bullish divergence, reinforcing the setup's reliability. Additionally, with the price positioned above the 200 MA, bullish momentum is even stronger, increasing the probability of a sustained move upward. Targets & Risk Management: 🎯 Take Profit 1: $130 🎯 Take Profit 2: $195 🔒 Stop Loss: Set just below the Right Shoulder 📈 Pattern: Head and Shoulders 💥 Confirmation: Entry on breakout above the neckline 📊 Divergence: Regular bullish divergence on MACD, signaling a potential trend reversal 📐 200 MA Support: Price is trading above the 200 MA, adding strength to this bullish setup This combination of pattern, divergence, and moving average support makes this trade an excellent opportunity. 🚀
NYSE:XYZLong
by SRA_Trades