Put Your Speculators On!This head and shoulders pattern could be just pure speculation at this point. In fact, let me reword that.. this IS speculation based on the fact that I missed the lows and psychologically, I'm really hoping this comes back to shore so I can get back on the boat with everyone else.
I do however do my technical analysis in advance and set alerts at levels like you should do and if it plays out then great if not there's always the opposite idea too. We move onto the next one.
For now though what I'm looking at is BITGET:ADAUSDT.P has closed the daily candle back inside the value area high ( VAH ) of the range they just left. I am now in a waiting game to see what happens with the second candle close but we just had a 7.5% drop from that value area high (white dots) and the weekly level.
The purple line is the previous Monthly VWAP (volume weighted average price) which when you go down to a lower timeframe it's actually touched (Just doesn't look like that here).
The yellow line is the previous Weekly VWAP which we had confluence with at the weekly level and the value area high and also back tested a couple of hours ago.
The blue bars are to show the 21% from the top of the head down to the neck of the head and shoulders pattern and then a repeated 21% from the neck to complete the pattern right into a point of control ( POC ) from a very high timeframe, I'm talking years.
If we start to lose some levels here like $0.35ish and back test it, I'll probably just wait to lose the POC and then see if we get the drop down into that area of confluence below at around $0.26.
I'm far too broke to be gambling so I'd rather wait and reward myself with a little bit of patience, who knows, it could just happen quickly but “Uptober” isn’t starting off that well so far.
I won't be looking for any long trades unless we can reclaim that weekly level and value area high. Targets would be the weekly level above with confluence from the high timeframe value area high and anchored VWAP from the all-time high (Green line).
This is not financial advice. This is just an idea and some slight education to put out there for anybody that's feeling a little bit lost about what they're seeing on the charts.
