What are the key indicators of a head and shoulder formation in the cryptocurrency market?

1 answers

• rajeev ahirSep 02, 2024 · a year ago
  When it comes to head and shoulder formations in the cryptocurrency market, there are a few key indicators you should keep an eye on. First, pay attention to the volume. During the formation of the left shoulder and the head, the volume tends to be higher. However, during the formation of the right shoulder, the volume usually decreases. Second, look for symmetry in the pattern. The left and right shoulders should have similar heights and widths. Lastly, watch for a break below the neckline. Once the price breaks below the neckline after the formation of the right shoulder, it confirms the head and shoulder formation. Remember, these indicators can help you identify potential trend reversals and make more informed trading decisions. Happy trading!
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