This is a 4-hour chart.
I see a pretty clear Head and Shoulders as outlined.
If we follow the projection of the Head and Shoulders, it takes us right to the level of the tail produced by the May 16th candle earlier this year.
Remember, wicks and tails like to be eaten.
Also, I drew a Fib from the high ($13.8K) to the low ($9K) and noticed a few things.
1. The two shoulders are at the 0.382 level.
2. The head is at the 0.618 level.
Both 0.382 and 0.618 are key pivot/reversal levels - just keep that in mind :)
Are we ready to take the trade? Nope. We need to wait for market structure to confirm bearishly (i.e double top w. breakdown) at the neckline, and it's not there just yet.
But I'll keep my eyes out.
I see a pretty clear Head and Shoulders as outlined.
If we follow the projection of the Head and Shoulders, it takes us right to the level of the tail produced by the May 16th candle earlier this year.
Remember, wicks and tails like to be eaten.
Also, I drew a Fib from the high ($13.8K) to the low ($9K) and noticed a few things.
1. The two shoulders are at the 0.382 level.
2. The head is at the 0.618 level.
Both 0.382 and 0.618 are key pivot/reversal levels - just keep that in mind :)
Are we ready to take the trade? Nope. We need to wait for market structure to confirm bearishly (i.e double top w. breakdown) at the neckline, and it's not there just yet.
But I'll keep my eyes out.