MATICUSDT
Hey all! Firstly, a left shoulder has not formed yet! So, at this point, there is no H&S pattern! It can turn into a broadening ascending wedge, or something else! That said, honing your predictive pattern recognition skills like an AI terminator taking out targets is always fun. Unless BTC or ETH flip the market bullish, I can see an H&S playing out as bulls unsuccessfully try to defend price action against bears. If they do, and fail, I will be ready! If they do and succeed my stops allow me to flip bullish on a dime! Remember to always use stops! If they get hit and the market is still bearish, you can get back in at a better price! If they get hit with a confirmed bullish flip you get to flip bullish!
I am an aggressive trader, so I will enter some at a confirmation of a reversal at the top of the right shoulder. I will add at a break below the neckline. I will add more on a successful retest of the neckline.
Very conservative traders put your stops above the neckline, conservative traders put your stops above the right shoulder, and aggressive traders put your stops above the head or the macro diagonal resistance line.
Aside from price action forming patterns, the RSI shows bullish hidden divergence, and stochs and PMARP are on the floor. Which give the bulls a chance to escape bears. But, also, if bears can successfully defend the top of a potential right shoulder, lead bulls into a bear trap!
Good luck and trade safely!
Bye!