Head and shoulders extension pattern
the price fails to exceed the right shoulder of big h & s and drops from the resistance line.
As it appears to be an extension of the head and shoulders pattern, it is expected to test the typical target of 60,000.
Furthermore, since this pattern is typically described as a reversal, if it exceeds 60,000, it might test the significant 55,000 level in a 4-hour frame.
The recent drop at the 63,400 point forms a resistance line connecting the right shoulder.
Because it failed to break through this resistance line, i bought short position at 63,300.
for future reference, if a head and shoulders pattern appears but only leads to a weakly decline, keep in mind that a strong upward trend might occur to test the resistance, and if this rise fails to break the resistance, a big short might follow next.
the price fails to exceed the right shoulder of big h & s and drops from the resistance line.
As it appears to be an extension of the head and shoulders pattern, it is expected to test the typical target of 60,000.
Furthermore, since this pattern is typically described as a reversal, if it exceeds 60,000, it might test the significant 55,000 level in a 4-hour frame.
The recent drop at the 63,400 point forms a resistance line connecting the right shoulder.
Because it failed to break through this resistance line, i bought short position at 63,300.
for future reference, if a head and shoulders pattern appears but only leads to a weakly decline, keep in mind that a strong upward trend might occur to test the resistance, and if this rise fails to break the resistance, a big short might follow next.
Comment:
My target has been achieved. I've taken just a very small additional short position and have cleared the rest.