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Inverted

We broke below the rimline of an inverted cup and handle.Something to be aware of. I have mentioned a potential inverted cup and handle awhile back maybe 3-5 ideas back...well with the latest drops we broke under that inv c&h's rimline which triggered a steeper fall. This is an incredibly deep cup and if it were to reach 100% of its projected target it could send us all the way to 4-.4.1k We have seen many normal cup and handles recently that have not reached 100% of their target however but we have also seen ones for example tron who have far exceeded their breakout target. So it's very much worth being aware of. At the same time there is a slight chance we could see a triple bottom form with February and April's lows and go skyrocketing back upward...or even just a double bottom with April's low. Definitely a difficult time to decide to be bull or bear...so in these instances it's best to follow the higher high/higher low principle as well as the lower low/lower high. By going by that principle alone it's not the wisest to enter right now...If you are hoping to potentially catch the double or triple bottom it may not be a bad idea to enter with a tight stop loss though. However it's best if you make your own decisions because this is not meant to be taken as financial advice. Good luck in whatever you choose and may the probabilities be on your side.
BITFINEX:BTCUSD
by DrDovetail
3
Potential Inverted Bart could take us back to $7300Just got a nice bull candle to end the day on the 4hr chart that took us above the current bearflag we were in and turned it into an inverted Bart. However, in order for this break to eb confirmed and not just a fakeout we need to see. the new 4 hr candle maintain itself above the 4hr t line(in tan). the potential climb is $7300 with the rsi and stochrsi where they currently are it's not out of the question for that kind of bounce...however until I see a series of higher low, higher high and a follow up higher low I won't be tempted to go long again on the idea strategy. I have indeed bought back in here at 6750 after exiting round 7632. However I will probably safe guard myself and exit again after this bounce then only entering again if we have another huge plummet or we form a higher low/higher high/higher low sequence. Just my style and not meant to be financial advice..so far it seems to be working out for me. The Cup and handle on the eve bottom seems rather unlikely now but technically not invalidated until price dips below bottom of the cup...however I think there's still a chance of the adam and eve double bottom being valid...or potentially us forming a triple bottom....the double bottom is definitely questionable at this point with this low of a dip however...so the smartest strategy I have to rely on at this point is the higher high/higher low and vice versa strategy...It tends to work better than anything else I do so when things are uncertain I trust that above all else.
BITFINEX:BTCUSD
by DrDovetail
LTCUSDT Short scenarioLTC had created a nice W formation and has now formed an inverted bear flag at the end of it. This could be a good potential short setup. We want to watch for first a break of the 50 EMA and then a break of lower trend line with confirmation. If we break the lower trend line we will likely head back down to support around $116 then $109 if that doesn't hold RSI is on a downtrend and currently hovering around 55 This is not financial advise. Just sharing a potential scenario.
Short
by mk6dunc
looking to form a higher low..potential h&s in playThe recent dip back to the 4hour 50ma has us looking for a bounce and hopefully forming another higher low to continue the series of higher lows/higher highs. However, it sent a bear wick under the 50ma before bouncing back upward and that wick dropped down to the exact level it would need to complete the head of a new potential head and shoulder pattern. Because of this it is imperative that on the next leg up we form another higher high otherwise the odds of forming the right shoulder of this potential head and shoulder pattern will be of a very high probability. Furthermore if we were to trigger that head and shoulder pattern there is a much larger inverted cup and handle pattern that could potentially be triggered shortly afterwards. Seeing a higher high after this higher low forms is very important, and if not at least an additional higher low or 2 until we reach that higher high. Hopefully this is what occurs...the inverted head and shoulder pattern we just broke above failed to reach its target breakout though so maybe the same would be true with a regular head and shoulder pattern as well. Stay cautious and vigilant and prepared for either outcome and you should be fine. I'm still optimistic of a bull run, but ready for the opposite.
BITFINEX:BTCUSD
by DrDovetail
4
BTC has broken above the inv h&s & falling wedge A good sign for the bulls as BTC has now broken upward from the bull flag it was in on the 1 day chart which has allowed it to break above both the inverted head and shoulder pattern and the falling wedge as well. It is still seeing resistance at the 4hr charts 60 line on the RSI but as soon as we can break above the 60 on the 4hr rsi and flip it to support I think the real bull run will begin...lots of bullish signals all around including the developing golden cross on the 1 day chart which is still probably a week or 2 away but worth keeping an eye on. If the inverted head and shoulder breakout is legit we should see the price action go up to around 8k and test the top trendline of the larger triangle pattern that we have been in since the beginning of the year. Our series of higher low/higher highs is still in tact as well so I still am a firm believer in "To the moon in June!"
BITFINEX:BTCUSDLong
by DrDovetail
3
Inverted Head & Shoulder Pattern flirting with neckline.If we trigger a bullish break upward from both the inverted head and shoulder pattern and the falling wedge pattern we will next be testing the much larger triangle pattern we are inside's top trendline. Breaking upward from the bigger triangle pattern has the potential to take us to 20k+ and saeeing how we are nearing it's apex as well I think up is going to be the path of least resistance and still am fully behind my mantra of "To the Moon In June!". Also, the original pattern of the Adam and Eve double bottom is still very much in play and I predict all of these bullish patterns will be triggering in the next couple months as well as the impending golden cross on the 1 day chart. As soon as the 200MA on the 1 day chart no longer factors in the climb to the ATH from november-first half of december. The 200MA should drop significantly and trigger the golden cross that will kick the bull market into gear. The 200MA is currently factoring in all price movement from November 13th of 2017 until today....so by July it should no longer be factoring in the climb to the ATH and the 200MA should by then definitely dip below the 50ma on the 1 day chart, if not sooner. Looks like it shold be a bullish summer.
BITFINEX:BTCUSDLong
by DrDovetail
2
RSI Reaching overbought conditions on the 4hrThe past 3 4hr candles have been somewhat indecisive closing as dojis with the most current 4hr candle started by dipping down low as a red candle all the way to the support line of the TLine(in yellow) before bouncing back upwards. Thecurrent minor retracement/dojis is mainly due to the RSI reaching up and touching the 70 range on the 4 hour...However the RSI is still looking very steady on the day chart so I think with enough bearish wicking on the next few 4 hour candles with them ultimately closing as dojis and helping to drop the 4hr RSI rate...I predict a much tighter range of resistance and support and lots of sideways trading for the next 1/2-3 days tops...However I think the big whales involved in bitcoin probaby want to see us break above the inverted head and shoulder pattern's neckline even more than us guppies so they likely won't be afraid to flex their dominance to help break that neckline within the enxt 1/2-5 days...the longer we go the smaller the amount bitcoin will have to climb to break that neckline. These patterns become somewhat of a self-fulfilling prophecy the more the big traders make their trading decisions based on them being triggered. I'd say only buy in at this point and really try your best to do so during dips(which as of now is anything in the 11200s or udner) With the 4hr RSI currently at near overbough levels this is usually when you will be able to catch great temporary dips.
BITFINEX:BTCUSDLong
by DrDovetail
Bitcoin is flirting with the neckline!Bitcoins bulls have been unstoppabull recently and witht he current price around 11430 it only has to reach 11600 to be firmly above the neckline. If it can close above on the 4hr and then close another followup 4 hour candle above that, odds are very good at that point that we have a valid inverted head and shoulders on our hands....those who have been following me for awhile now will realize that I was the first to call a second much more massive inverted head and shoulders that used the same head as the first one we saw weeks ago. I was calling this to happen before the second potential shoulder had even began to form. At the time I was calling it hypothetical because I wasn't certain a head of a head and shoudle rpattern could be triggered twice. Now that we are this close I'm pretty confident we will see it break/close above the neckline and form a valid pattern. Of course until it does that it won't be valid, but I'm more confident now than ever before that it will. Today's big resistance is at 11500...if the bulls can topple that as easily as they did the resistance lines of 11120, 11300, and 11400 yesterday then I see us very potential breaking above the neckline as early as the upcoming 1 day candle. it may decide to trade sideways for a day or 2 and possibly even retrace a slight bit before this happens though. So hodl with all your might and I reccomend buying in more at any convenient dips.
BITFINEX:BTCUSDLong
by DrDovetail
1day candle closes as green spinning top confirming breakoutToday's 1 day candle has closed as a green spinning top giving us a confirmed breakout from the descending chqannel and also taking us another big step closer to having a valid massive inverted head and shoulders pattern. The Galaga Battleship is nearing completion and readying itself for blastoff....will have to break the neckline and have both a 4hr candle c lose above it and a big influx of volume to go with it..although leading up to a confirmed inverted head and shoulder we usually see volume placate during the forming of the second shoulder, however right after we break the neckline you should see a healthy increase in bullish volume. I'm thinking we should see a break above the neckline by the 5th or the 6th but that is just a guess there could be plenty of sideways price movement to extend that a few day longer and it could also happen even quicker than my projection. I'm still confident it will happen...but until you see a break above the neckline and close above it as well (around 11700) then there is not yet a valid pattern. Currently on the gdax order book we can see that at 11120 there is a huge sell wall of 300 coins and surounding that on either side are 100 coin orders and just above and below those orders of 50 coins or greater....collectively that should be enough to keep the price at bay and under that number for at least a few bounces....I've seen orders of only 12-20 coins go up against 100+ coin walls though recently and find ways to grow large enough in the moment to overcome them...so there's still a chance they could overcome that wall at 11120 as early as tonight...but for now it's forming very strong resistance.
BITFINEX:BTCUSDLong
by DrDovetail
Bitcoin could reach $17k in a monthSometimes inverting a chart helps to see patterns more clearly. I've inverted the BTCUSD daily chart, and the head-and-shoulders pattern becomes more visible. Does this chart look bearish? Indeed it does, which is bullish for bitcoin. The neckline is at $12k. A sustained break above this level has a target price of $17k. It would likely take a month for this pattern to play out, which is around May 1st. On the downside, we'll want to continue watching the $9k level which is the top of each shoulder.
BITFINEX:BTCUSDLong
by lienhard
Why btc could drop into the 9200s before it reboundsShown here on the 4 hour chart I have a dotted horizontal white line representing the neckline of the head and shoulders pattern. below that I have connected a yellow dotted trendline from the low of the first shoulder to the candles we currently have now on the 2nd shoulder. I also took a dotted white line and made it run parallel with the necklines slope...one I did that you can see the smaller dotted white line is a few pips lower than the yellow dotted line...this is where the price would need to fall to make the slope of the shoulders parallel to the neckine. I don't know if that is a requirement for a head and shoulder pattern but I'm guessing it probably is commonly the case. This is why I make this prediction. Time will tell whether or not I'm right and whether or not the head and shoulders even plays out in the first place.
BITFINEX:BTCUSD
by DrDovetail
Inverted head & Shoulders still very much in play / Death CrossHey all just an update...I've pulled my btc position via stop loss last night at around 10490 but have decided to leave ethereum in for now as its doing well with robinhood...As the price continues to pullback the good news is an inverted head and shoulder pattern is still very much in play....however as you can see with the small yellow dotted lines that show the current price in a trendline with the deepest price point on the left shoulder, we might still not be at the depth peak of the right shoulders dip just yet.... the small white dotted line directly underneath the yellow dotted line has the exact same trajectory as the dotted white neckline of the head and shoulders and that line bottoms out around 9580. so we could still dip to the 9500s in fact that's the exact pricerange I see on the gdax depth chart where it looks like we have enough support volume at that pricepoint to carry us back into the 1100s.....Now I'm sure there's been plenty of head and shoulder patterns who's necklines and shoulder tops didn't run exactly parallel to eachother but there is at least a increased likelihood and mild improvement in probability that if the price did pivot in the 9500s at the parallel price point that the odds of it becoming a legitimate inverted head and shoulders once the shoulder reaches the end of the right shoulder fot it to indeed be a massive validated head and shoulders pattern with at that point after volume confirms it a lot of upside. Let me know in the comments how often the head and shoulders pattern's shoulder and necklines don't follow a parallel trendline if you happen to know or get a chance. Lastly we recently had a brief golden cross recently between the 200EMA and 50EMA but it appears the blue line and grape line are headed towards eachother again..it may lead to another death cross or it could bounce off before that happens...a death cross could be what finally pushes things down to the 9500 range. Thanks for reading...play responsibly. Always set responsible exit and entrance points to whatever fits best with your life.
BITFINEX:BTCUSDShort
by DrDovetail
Reversal doji on the 4 hour chart to end yesterday. Bulls back?We got a welcome and relieving sign after all the carnage of the previous day a few hours ago at the end of yesterday's 1day candle...the downtrend on the 4 hour chart ended the day with a bullish green reversal doji, and we are now seeing what is so far a reasonable bounce up off of the multi support convergence of the 4 hour chart's 200EMA(in grape), 50EMA(in blue), and the bottom ascending channel trendline(in tan). the 200EMA seems to be the one that has taken the role of primary support so far, but the 50EMA which is just slightly above it may take over that role if the candles seem destined to stay bullish. On the 1 day chart it is the Tline(in yellow aka 8EMA) at roughly $10460 that is acting as support and currently the 50 EMA as resistance although we have had a wick sneak above it already so far so the real resistance for the day could be yet to be determined...may be the blue fib extension line at 78.60%(10883.5) and if we get some serious volume it could even break above that and find resistance even further up. Best to look and see what level of volume we get for the day to know for sure how much impact this boucne will have behind it. I think the recent integration of segwit will help with that, and hopefully keep things bullish. My hypothetical secondary inverted head and shoulders that I've been talking about for a few days is still forming rather nicely I went ahead and indicated on the graph..assuming we stay within the trend lines until a confirmed inverted head and shoulder breakout if so (it breaks the neckline and has a huge bullish volume swell to go with it and no bearish divergence from mac d or rsi) I think we can hit our new taget of 17147! Exciting times but play cautiously and let us never forget the carnage we witnessed last night. set reasonable exit and entrance points and I wish you all luck.
BITFINEX:BTCUSDLong
by DrDovetail
hypothetical extended invertedhead & shoulder neckline breached?The Bull run continues. was happy to see the momentum happening today. I added to my position at the near-bottom of today's candle's dip (10300). It surpassed the red fibline and may be keeping it as a line of support depending on how today closes out. Today's best trading probability opportunities would be small laddering in at 10300 and profit taking just below the top of the tan trendline. We seem still well on our way to reach the initial inverted head and shoulder trajectory target at 11900...but I might have spotted the potential for the real shoulders of the inverted head and shoulders to be much more massive tahn originally thought...and if we close today's candle where we are in price now or above that, that would signify that the larger hypothetical neckline(the tan horizontal dashed line) had been breached which would equal a far higher climb(vertical tan dashed line) I don't know if Head and shoulders patterns can operate like that or if its possible for a chart pattern to trigger twice though and would love to hear input from anyone who knows the history of the head and shoulder pattern better than I to know whether or not my hypothetical is even possible. Even if not I still suspect we will flirt with the top green channel line....and if it is correct I think we will blow the lid off the channel and sky's the limit. Thanks to all who have folloed or agreed with my ideas, I have finally hit 100 rep points so for that I am grateful. As always these are my methods not suggesting anyone use them as this is not financial advise. You do you.
BITFINEX:BTCUSDLong
by DrDovetail
BTC Blows up outta the inverted h&s pttern brking the neckline! The neckline has been breached in big fashion! However not as much volume as you would anticipate to go with it....that may very well come today. it has blasted past all recent lines of resistance and now seems to be forming it's new resistance line with the green fibonacci retracement line. We may most likely see it bounce back down and see the inverted head and shoulder neck line as the current support at which point I say is the best opportunity to buy in and enjoy being back on the impending bull trend to come. I'd do any selling just below the green fib line and any buying near the thin grey head and shoulder neck line! Bring on Pamplona!!!
BITFINEX:BTCUSDLong
by DrDovetail
3