We have what looks like the formation of the left shoulder and head with a down-sloping neckline. We have something to reverse, a 70% correction and strong downtrend.
A successful right shoulder formation is when price does not fall below the left shoulders low which is where our stop will be. I do not want to see the price linger under the neckline to create a drawn out right shoulder.
Waiting for the price to break over the neckline to confirm intent of a reversal where the entry is.
has declined from the left shoulder to the right. Also looking for signs of a buy side breakout igniting an upwards trend.
The profit target is a conservative measure of the head to the neckline with a 2R return.
This is an hourly timeframe therefore it is not as strong a signal as say a daily, weekly or monthly. However entries should not be taken until we are over that down-sloping neckline.
Target $12,250 for 2R