I just want to give a small tip to traders, I didnt want to post this at 55K to create panic and being call a FUD, so I will do it now.
Next time you see a chart pattern like this, Head and Shoulders TOP, I suggest you sell all your profit. I know on the stock market, the head of the h&s is usually higher than the L/R shoulders, but this is crypto, we are trading 24/7, I dont expect the chart patterns to be exactly the same.
I will continue watching this pattern because it can spare money to a lot of people. I recently spotted it on $XBOT too around 30K, now its down to 16K...
So again, sell on this H&S Top next time, its easier if you set yourself some rules.
peace
Well that's pretty interesting. I didn't know about this at all. Just did more research online and will definitely be more aware of the H&D pattern. They also say that to figure out when to buy back in, draw a line from the base of one shoulder to the base of the other shoulder. That'll define the support price. Then, take the peak price at the head and subtract that support price from it. Then, take that value that you got from that subtraction and subtract it from the support price, and that'll give you the price you should buy back in at. So, HAL's peak looked like it was around 63,000 at the peak of the head. About that. The support price from shoulder to shoulder I think looked to be about 50,000. The difference between those two is 13,000, so you'd subtract 13,000 from the support of 50,000 and get a buy back in price of 37,000. The problem is that it fell to 20,000 lol So either my numbers are wrong, or because since it's crypto it doesn't make any sense and traditional chart analysis doesn't apply. haha
Yes well like I said, I noticed that there are some theoretical differences between TA in crypto and in the stock market but I am working on some research and trying to identify chart patterns in crypto to study them.
This is some info on H&S Top, a big quantitative study was made by Bulkowski on every chart patterns. This is for HS TOP, calling a top.
http://thepatternsite.com/hst.htmlHead-and-shoulders tops are the best performing bearish chart pattern in a bull market. Even in a bear market, they are reliable performers, but a pullback occurs nearly two-thirds of the time.
Overall performance rank (1 is best): 1 out of 21
Break even failure rate: 4%
Average decline: 22%
Pullback rate: 50%
Percentage meeting price target: 55%
The above numbers are based on hundreds of perfect trades.