As the markets looks like it is slightly back, with some coins reversing to the upside, NEOBTC chart is also spotted with a chart pattern called THE INVERTED HEAD&SHOULDERS.
The inverted head and shoulders formation is one of the most popular and reliable formations used by most traders.
When the pattern has fully formed it means the prior downtrend is over, and an uptrend is underway. This is why the inverse head and shoulders is called a reversal pattern. Inverted head and shoulders occur in all markets(bullish&bearish) and on all time frames.
The head and shoulders pattern is a reversal pattern that signals a downtrend is over.the inverse head and shoulders pattern occurs after an extended move down. It represents a possible exhaustion point in the market, where traders can begin to look to take a position as the market establishes a bottom and starts to climb higher.
One area where a lot of traders go wrong is thinking that the pattern is confirmed as soon as the second shoulder forms. Although the pattern begins taking shape at this stage, it isn’t confirmed until the price closes above neckline which is the resistance(the green zone).
The inverse head and shoulders pattern occurs during an downtrend and marks its end. The chart pattern is composed of three lows, with two retracements in between.
Price trend Downward leading to the pattern, The pattern should look like an inverted person's head and shoulders, proportional, and not lopsided.
The two shoulders should bottom near the same price, be nearly the same distance from the head, and look similar (both wide or both narrow).
Neckline Joins the two armpits.The pattern confirms as a valid one when price closes above a down-sloping neckline or above the right armpit when the neckline slopes upward.
Technicals suggests that price is currently consolidating between the 0.786fib and 0.618fibonacci retracement level, which is holding up to breakout from the neckline. The chart looks more bullish based on the bullish chart pattern.
STOP LOSS: 0.00699359
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.