Head and shoulders in combination with fan formation

31 Mar 2018

We can see a head and shoulders reversal pattern forming on BTC 1h. Volume has decreased on each trough descent which is typical in head and shoulders patterns, specially downtrend reversals. Waiting for a breakout with high volume, if this is not so, then the pattern may be too weak specially considering it is a reversal to a downtrend. After the breakthrough a return to the neckline is expected.

Influencing factors:
+ Green line is a long term trendline with three bounces in the past year and no breakthroughs. High indicator that a reversal may soon take place.

+ We can also see a fan in this current downtrend where price has already broken through the first and second trendlines.

1 Nis 2018

Not

Breakout failed and pattern was not completed.