BTC/USD

Updated

For me there are 2 options in the 1 hour chart.
1. either an inverse SKS with a new high following a trend reversal formation
2. Or a confirmation of the downtrend by breaking the HL

I wish you success

Note

This is for the Beginner:

Shoulder-head-shoulder formation (trend reversal formation)

A classic trend reversal formation is the SKS formation, which initiates a trend shift towards a downward movement. The stock price reaches a high, referred to in Figure 1 with the left S, and then goes into a consolidation. During the following rally, a higher high (K) will be formed within the intact upward movement. However, the subsequent consolidation then reaches the price level of the previous low. This must not be achieved exactly, but the second consolidation low tends to be at the level of the first.

img.godmode-trader.de/charts/53057/2014/04/SchulterKopfSchulter.png

If the price trend can no longer be sustained upward, it comes with another intermediate high, in the figure marked with the right S, for the formation of a shoulder-head-shoulder (short: SKS) trend reversal formation. The decisive technical mark is the neckline, which is shown in dotted lines in Figure 1. A sell-signal is triggered when this neck-line is broken down. The theoretical price potential also corresponds to the largest extent within the formation in the case of an SKS formation, which is here, however, removed downwards from the break-out point at the neckline.

img.godmode-trader.de/charts/53057/2014/04/SchulterKopfSchulterEinstiegsszenario1.png

A classic entry into a short position occurs when the neckline breaks (see Figure 2). As already described in the triangles, this point is the least favorable. At the time of the fracture of the neckline, the price history is probably already oversold. This can first again initiate a counter-movement upwards and thus brings an entered trading position immediately in danger. It is also a good idea for the trader to wait for confirmation of the liquidation of the SKS formation and to use it as an entry point. If a position is set up immediately after the formation has been activated, then a reasonable stop loss, measured by the available price potential, is relatively far away and should lie above the right shoulder of the formation.

img.godmode-trader.de/charts/53057/2014/04/SchulterKopfSchulterEinstiegsszenario2.png

If the outbreak movement is confirmed by a setback of the price to the broken neckline, a more tightly secured short position may be entered when the price moves lower again (see Figure 3). The stop loss can be sensibly placed close to the neckline in relation to the available price potential. However, if you wait for an outbreak confirmation first, there is a risk of missing some trades that are heading directly towards the theoretical price target. However, the low tight hedging potential given at an entry after a pullback to the nude line outweighs the missed trades more than.

img.godmode-trader.de/charts/53057/2014/04/SchulterKopfSchulterinvers.png

Just as the SKS formation shown in Figure 1 shows a topping of the price trend and should initiate a downward movement, so too does a mirror image of ground formations arranged in this form. These inverse SKS formations then generate a corresponding buy signal in the event of an outbreak across the neckline and can otherwise be treated by the trader in the same way. Other easily identifiable trend reversal formations are the double tops and raised floors.

Trade closed manually

In wavetrendindikator they see again the break of my marked yellow line. It has taken the way down and the bottom left in the picture (HL) penetrate down. The trend reversal formation was broken down by the break and it went on to short with the stop slightly above the 6481 if you trade it.

Lyiness

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