Here we have one with lots of drawings.
On the bigger picture, in daily timeframe, I see a Head and Shoulder formation with neckline retest. Let's remember Head and Shoulder:
✅ Downward slopping neckline tends to bring the biggest price move (visible on daily)
✅ Highest volume is at the head or at the left shoulder (it is at the head in this case)
✅ Volume falls after the head, lowest volume is at right shoulder (it is)
❌ Volume after breakout is high (it's not, yet)
If this formation works, the best scenario of the worst scenario is that the 0.5992 line is going to support the price. If not, we might see as low as 0.5245 and even 0.4766.
Let's talk about the reverse Head and Shoulder in 4 hour timeframe, though.
❔Upward slopping neckline tends to bring the biggest price move (not happened)
✅ Highest volume is at the head or at the left shoulder (it is at the left shoulder in this case)
❔Volume falls after the head, lowest volume is at right shoulder (hmmm.. mehh.)
❔Volume after breakout is high (it hasn't happened yet)
▶️ In addition to these rules, "many H&S patterns are more complex and contain other patterns within them." (shout out to barbara rockefeller)
If the price at or after the 4 hour February 2, 7 AM candle bounces back up from 0.7898, it can create a mini cup and handle. Furthermore, if the bounces up from 0.7654, it can create a double bottom; however, this formation is accurate as a reversal pattern, not as a continuation pattern, so it may not be reliable in this case. Either way, 0.7654 is going to be an important support line.
Last scenario in my mind is that the price is just going to keep consolidate in sideways range and we will forget about these heads and shoulders. The math based indicators are more on this side in my opinion. Fundamentals can help the market decide that.
I wish everyone profitable trades.
this is not a financial advice in any sort of way.
On the bigger picture, in daily timeframe, I see a Head and Shoulder formation with neckline retest. Let's remember Head and Shoulder:
✅ Downward slopping neckline tends to bring the biggest price move (visible on daily)
✅ Highest volume is at the head or at the left shoulder (it is at the head in this case)
✅ Volume falls after the head, lowest volume is at right shoulder (it is)
❌ Volume after breakout is high (it's not, yet)
If this formation works, the best scenario of the worst scenario is that the 0.5992 line is going to support the price. If not, we might see as low as 0.5245 and even 0.4766.
Let's talk about the reverse Head and Shoulder in 4 hour timeframe, though.
❔Upward slopping neckline tends to bring the biggest price move (not happened)
✅ Highest volume is at the head or at the left shoulder (it is at the left shoulder in this case)
❔Volume falls after the head, lowest volume is at right shoulder (hmmm.. mehh.)
❔Volume after breakout is high (it hasn't happened yet)
▶️ In addition to these rules, "many H&S patterns are more complex and contain other patterns within them." (shout out to barbara rockefeller)
If the price at or after the 4 hour February 2, 7 AM candle bounces back up from 0.7898, it can create a mini cup and handle. Furthermore, if the bounces up from 0.7654, it can create a double bottom; however, this formation is accurate as a reversal pattern, not as a continuation pattern, so it may not be reliable in this case. Either way, 0.7654 is going to be an important support line.
Last scenario in my mind is that the price is just going to keep consolidate in sideways range and we will forget about these heads and shoulders. The math based indicators are more on this side in my opinion. Fundamentals can help the market decide that.
I wish everyone profitable trades.
this is not a financial advice in any sort of way.
Trade closed: target reached