Too flat action increases risk of failure

6 de jan. de 2019

Greetings guys,

Although our H&S pattern on daily chart is still valid, at least on paper, but the action that we see on 4H time frame increases chances of failure.
As you can see the daily right arm bottom takes the shape of smaller 4H H&S pattern. Normal price action suggests upside acceleration as soon as H&s has been formed.

But here we see opposite picture - flat action and triangle shape. This is not normal. Only external driving factor could push BTC up, but technical picture warns that something is wrong.

So, if you already have longs - move stops to breakeven or, just under the lows of daily right arm. If not - stands a side for awhile.