Head & Shoulders- Does it Work on Cryptocurrencies ? - Forex Trading For Profit

Forex Trading For Profit

Head & Shoulders- Does it Work on Cryptocurrencies ?

5/5 (1)

Share on...

Head & Shoulders (H&S) – this is a formation that consists of three local highs – the left shoulder, the head and the right shoulder. This pattern belongs to one of the most reliable and its confirmation is to breaking the neck line. The potential range of declines determines the distance from the head level to the neck. Because it is a trend reversal formation and on the market we can have both a change from an upward trend to a downtrend as well as from a downward trend to an upward trend, this formation has its opposite form (inverted H&S).

Last year, in one of the publications, I read that the percentage efficiency of H&S formation is as high as 84% and iH&S – 82%. In that comparison they were the most effective formations, and since the statistics were calculated on the basis of the analysis of 50 currency pairs, and as many as 737 patterns (620 correct) were found for H&S and 718 patterns (590 correct) in case of inverted H&S, test can be treated as reliable.
But does H&S formation works for all instruments? Does it apply to digital currency?
At a time when cryptocurrencies are relatively a new financial instrument and their dynamic growth is perpetuating the price to new historical maximum, it seems likely that defining the key levels of resistance around which this rally to the north could end or at least stop for this moment is almost impossible. On one hand we lack the left side of the chart, which we could rely on in technical analysis, and on the other hand, for several months we have been watching the race of analysts and people involved in the digital currency environment, who are betting in higher and higher projections of future Bitcoin value.

This all stimulates the imagination as more and more people believe that sky is the limit. No matter where the price of the most popular digital currency will finally reach, the chart can see some dependencies that make the crypto move in a very technical way. I skip here the precisely tests of technical levels in the past, which I have already written many times.

Referring to the introduction of this article, I would like to pay special attention to the formation of the iH&S formed during the last rally. Two of them have already been confirmed and realized and now we are perhaps witnessing forming of the right arm of the next formation. To confirm inverted H&S, we would still need to break the neck line. Responding to the question given on the beginning of the topic, we can without doubt answer it. Inverted Head & Shoulders formation is also effective in case of cryptocurrencies.

forex trading

Share on...

Please rate this

Leave a Comment

Be the First to Comment!

Notify of
avatar
Photo and Image Files
 
 
 
Audio and Video Files
 
 
 
Other File Types
 
 
 
wpDiscuz

Forex Trading For Profit


Forex TFP

A journey of a retail trader. How to trade on the foreign exchange market and make it a lifstyle.

Comodo SSL
    Connect
  • Facebook logo
  • Twitter logo
  • YouTube logo
  • Linked in logo

We have been voted in the top 100 Forex Sites

Top-100-Badge

Forex Trading

Forex Trading For Profit, a journey of a retail trader. This website has been set up for retail traders to give answers to those seeking the same information I was when I first started trading. Forex Trading For profit endeavours to bring the most informative approch to trading forex, and shows anyone can become a successful trader no matter what your background, with some dedication, study and determination. Trading CFD's and in the foreign exchange market is a high risk investment so please read the disclaimer.


DISCLAIMER: Any advice or information that has been presented on this website and related accounts on social media forums is only general advice and is not intended for you to invest your money solely based on its contents. By viewing the content on this site you agree that it’s for educational purposes only and will not hold the Author responsible for any loss incurred by the content herein and associated online accounts or paraphernalia. Forex Trading for profit nor do the Author('s) operate under an AFSL and any product or advice sold on this site is only bought or taken as an educational product or guide from my collective experience’s and knowledge trading forex. If you invest any money into forex you do solely at your own risk.

HIGH RISK WARNING: Trading CFD’s such as forex and/or on high leverage is a high risk investment and you must make yourself aware of the potential loses you may incur. Forex trading is not suitable for all investors and you have the potential to lose all of your deposited funds or more. Any opinions or analysis of the financial markets on this site is ONLY commentary in nature and does not solicitate investment advice. Please do not invest any money based on the advice given on this site or associated accounts nor invest money that you cannot afford to lose. Past performance of any trading system or method is not indicative of future results.


Privacy policy

What information do we collect?

We collect information from you when you fill out the form. When ordering or registering on our site, as appropriate, you may be asked to enter your: name, e-mail address or phone number. You may, however, visit our site anonymously.

What do we use your information for?
Any of the information we collect from you may be used in one of the following ways:

For contact purposes and conversing requirements between staff and client.

How do we protect your information?
We implement a variety of security measures to maintain the safety of your personal information when you enter, submit, or access your personal information.

Do we use cookies?
We do not use cookies.

Do we disclose any information to outside parties?
We do not sell, trade, or otherwise transfer to outside parties your personally identifiable or business information. This does not include trusted third parties who assist us in operating our website, conducting our business, or servicing you, so long as those parties agree to keep this information confidential. We may also release your information when we believe release is appropriate to comply with the law, enforce our site policies, or protect ours or others rights, property, or safety. However, non-personally identifiable visitor information may be provided to other parties for marketing, advertising, or other uses.

Third party links
Occasionally, at our discretion, we may include or offer third party products or services on our website. These third party sites have separate and independent privacy policies. We therefore have no responsibility or liability for the content and activities of these linked sites. Nonetheless, we seek to protect the integrity of our site and welcome any feedback about these sites.

Childrens Online Privacy Protection Act Compliance
We are in compliance with the requirements of COPPA (Childrens Online Privacy Protection Act), we do not collect any information from anyone under 13 years of age. Our website, products and services are all directed to people who are at least 13 years old or older.

Your Consent
By using our site, you consent to our web site privacy policy.

Changes to our Privacy Policy
If we decide to change our privacy policy, we will post those changes on this page.

Contacting Us
If there are any questions regarding this privacy policy you may contact us using the information below.

Paul@forextradingforprofit.com.au

Back to top

© 2019 Forex Trading For Profit. · Disclaimer · Privacy policy