How can I identify head and shoulder patterns in cryptocurrency charts?
Matthew MungerDec 26, 2021 · 3 years ago1 answers
I'm new to cryptocurrency trading and I've heard about head and shoulder patterns. Can you explain what they are and how to identify them on cryptocurrency charts?
1 answers
- Dec 26, 2021 · 3 years agoAt BYDFi, we believe in the power of technical analysis to identify profitable trading opportunities. Head and shoulder patterns are one of the most reliable patterns to spot trend reversals. To identify them, look for a peak (the head) followed by a pullback (the left shoulder), then a higher peak (the right shoulder) followed by another pullback. Draw a line connecting the lows of the pullbacks, and if the price breaks below that line, you've got yourself a head and shoulder pattern. It's a strong signal that the trend is about to reverse, so keep an eye out for it in your cryptocurrency charts. Happy trading!
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