BTC 1W hidden Head and Shoulders pattern shown on 2h
Looking at the weekly chart, I noticed a clear H&S pattern on VWAP. VWAP is an intraday indicator, but it can show a pattern in larger frames, like now.
I was trying to find a way to draw and measure it clearly on commonly used timeframes, but it is most apparent on a 2h chart.
As you can see on VPVR on the right, the neckline is below the 27100 resistance, and if it breaks it, there is a gap down to 25100. But the full potential of the pattern targets 23100.
On my trend wave indicator, the weekly trend reached a local top on the 17th and turned bearish at the +60 line. Right now, it is right above the +50 line.
That area often acts as support and resistance. And here on 2h, the trend is reversing right above the zero line, which is also strong support.
Still, since this timeframe is not usual, this could also mean that trend is being rejected from it.
The chart is bearish. Volume is low.
But the price is what it is. Trade with the trend. But it doesn't hurt to be prepared. Right?
I was trying to find a way to draw and measure it clearly on commonly used timeframes, but it is most apparent on a 2h chart.
As you can see on VPVR on the right, the neckline is below the 27100 resistance, and if it breaks it, there is a gap down to 25100. But the full potential of the pattern targets 23100.
On my trend wave indicator, the weekly trend reached a local top on the 17th and turned bearish at the +60 line. Right now, it is right above the +50 line.
That area often acts as support and resistance. And here on 2h, the trend is reversing right above the zero line, which is also strong support.
Still, since this timeframe is not usual, this could also mean that trend is being rejected from it.
The chart is bearish. Volume is low.
But the price is what it is. Trade with the trend. But it doesn't hurt to be prepared. Right?
Comment:
I see now that I wrote 2h instead 2D and the timeframe on the chart is 1D, where I ended up measuring the potential of the pattern, which is now invalidated anyway. Sorry for this mess. 😊
