You are viewing a single comment's thread from:

RE: Bitcoin (BTC) Evening: When is the Best Time to Buy?

in #bitcoin7 years ago

Although @haejin may be correct that this wont end up forming a H&S, I believe he was incorrect about the H&S volume:

Volume: As the Head and Shoulders pattern unfolds, volume plays an important role in confirmation. Volume can be measured as an indicator (OBV, Chaikin Money Flow) or simply by analyzing volume levels. Ideally, but not always, volume during the advance of the left shoulder should be higher than during the advance of the head. This decrease in volume and the new high of the head, together, serve as a warning sign. The next warning sign comes when volume increases on the decline from the peak of the head, then decreases during the advance of the right shoulder. Final confirmation comes when volume further increases during the decline of the right shoulder.

http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:head_and_shoulders_top_reversal

This is with the caveat that Haejin has much more experience than I do, so he may disagree with this assessment. I guess only time will tell, but it's good to have it in our bag if we need it.