What are the key indicators to look for when identifying a head and shoulders graph pattern in cryptocurrency charts?

1 answers

• Jan 13, 2022 · 3 years ago
  When it comes to identifying a head and shoulders pattern in cryptocurrency charts, it's important to look for specific indicators. Firstly, pay attention to the volume during the formation of the pattern. Typically, the volume should decrease as the pattern develops, and then increase when the price breaks below the neckline. Secondly, analyze the symmetry of the left and right shoulders. They should be relatively equal in height and width. Lastly, consider the trendlines that connect the highs and lows of the pattern. The neckline should act as a support level before the breakdown. By following these indicators, you can enhance your ability to identify head and shoulders patterns in cryptocurrency charts.
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