ADA Head and Shoulders Pattern: Is it a Bearish Breakout Opportunity?
What is a Head and Shoulder pattern ?
It is formed by three peaks, with the middle peak being the highest (the "head") and the two outer peaks being slightly lower (the "shoulders").
The pattern is completed when price breaks below the "neckline," which is a support level that connects the lows of the two valleys that form the "shoulders." The neckline is considered a key level because a break below it indicates a shift in the balance of power from the buyers to the sellers.
ADA's Head and Shoulders pattern broke down a crucial level at 0.3750$ - 0.3800$, indicating a bearish downtrend . Institutions and whales could push the price to targets 0.3430$, 0.3200$, and 0.3000$ with a re-test of the level (3750 - 3800) before a potential dump.
Probability of trade/setup ?
Hitting targets :- 70 percent
Trade's success is subject to a degree of uncertainty and risk. It's important to remember that no trading strategy or analysis method can guarantee success, and that losses are a normal part of trading.
When would setup be invalidated ?
The head and shoulders pattern on ADA may be a fake-out, if price tries to close above 0.3750$ - 0.3800$ on a daily timeframe (2 daily closing candles) and sustain there to eventually breakout 0.3966$ level with strength and volume.
What is a Head and Shoulder pattern ?
It is formed by three peaks, with the middle peak being the highest (the "head") and the two outer peaks being slightly lower (the "shoulders").
The pattern is completed when price breaks below the "neckline," which is a support level that connects the lows of the two valleys that form the "shoulders." The neckline is considered a key level because a break below it indicates a shift in the balance of power from the buyers to the sellers.
ADA's Head and Shoulders pattern broke down a crucial level at 0.3750$ - 0.3800$, indicating a bearish downtrend . Institutions and whales could push the price to targets 0.3430$, 0.3200$, and 0.3000$ with a re-test of the level (3750 - 3800) before a potential dump.
Probability of trade/setup ?
Hitting targets :- 70 percent
Trade's success is subject to a degree of uncertainty and risk. It's important to remember that no trading strategy or analysis method can guarantee success, and that losses are a normal part of trading.
When would setup be invalidated ?
The head and shoulders pattern on ADA may be a fake-out, if price tries to close above 0.3750$ - 0.3800$ on a daily timeframe (2 daily closing candles) and sustain there to eventually breakout 0.3966$ level with strength and volume.