ETH/USD - Potentially Head & Shoulders - trade the break down

Not confirmed yet, but it looks like there is a pretty high chance that the price will retrace from the current levels, which will indicate that an H&S pattern will be formed, which means the up-trend reversal.

As a result, it would be reasonable to open a short position on the break of the neckline. A 1-hour time filter (candle close) should be applied as a trigger for the trade. SL above the second shoulder and TP based on the Minimum Price Objective.

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Comentário:

We finally got a break of the neckline, but from the long-tailed candle, it looks like it might be a bear trap. As a result, the short trade has not been opened yet.

Now, I will be waiting for another break of the neckline with 2 consecutive candles close below it. Otherwise will cancel the trade set-up tomorrow.

Ordem cancelada