What are the key indicators to look for when identifying an inverse head and shoulders pattern in the cryptocurrency market?

1 answers

• Apr 23, 2022 · 3 years ago
  When it comes to identifying an inverse head and shoulders pattern in the cryptocurrency market, one key indicator to look for is the volume during the formation of the pattern. Higher volume during the formation of the head and shoulders can suggest increased buying or selling pressure, providing confirmation of the pattern. Traders also pay attention to the neckline, which acts as a resistance level that needs to be broken for the pattern to be confirmed. Additionally, the height of the shoulders and the head should be roughly equal, with the head being lower. It's important to note that the inverse head and shoulders pattern is considered a bullish reversal pattern, indicating a potential trend reversal from a downtrend to an uptrend.
  747374