Greetings, friends and readers. I continue to analyze graphic figures using the classics of graphic analysis by Eric Naiman. For those who haven't read Part 1, I highly recommend that you read it first...
A new Inverted Head & Shoulders pattern formed today on ETC, #ETC
Although I said that this figure is not very frequent on the chart. However, it is very strong and I really like trading it. I like it so much that when it appears, other signals, including signals from price channels, can be ignored. (But you can also not ignore it, it all depends on your strategy)
It is built on five points, see the picture above.
Points 1234 - neck line
Point 5 head.
How to use it?
Between points 2 and 3 we draw a yellow line to point 5 and transfer it to point 4... The top point of the yellow line will show the Target up to which the head and shoulders will work at 90%. Further is no longer known...
At point 4 and further along the neckline this is the range for entering a buy...
Build a figure with me...
So we got a target of $29.6.
To be on the safe side, we place an order for this target or slightly below 5-10% for sale.
That's it. We watch and don't move ))
You can set a trailing stop order to squeeze the price and not go into the minus. Here everyone chooses the most convenient options for themselves.
By the way, for those who are too lazy to study the market, simple strategies like sliding channel strategy... work well on crypto.
And take a look at the currency pairs in part 1 and part 2 for those who haven't read...
Profit and patience to all!
