What is head and Shoulders pattern in crypto trading?

Head And Shoulder Pattern In Crypto Trading : How To Identify It On A Crypto Chart? Head and shoulders pattern can indicate a change in trend in either the bullish or bearish direction.

What is a head and shoulders chart?

The head and shoulders pattern is a common and straightforward technical analysis chart pattern that shows a baseline with three peaks, the middle peak being the highest. The head and shoulders chart shows a bullish-to-bearish trend reversal and alerts traders to the impending peak of an ascending trend.

Is a head and Shoulders pattern a reversal or a continuation pattern?

A head and shoulders pattern can act as a reversal or as a continuation pattern. Whether it acts as a reversal or continuation pattern depends on the trend prior its formation and the type of the Head and Shoulders pattern. The regular Head and shoulders pattern is regarded as a bearish chart pattern and can be seen below.

What is inverse head and Shoulders pattern?

An inverse head and shoulders, also called a "head and shoulders bottom," is similar to the standard head and shoulders pattern but inverted, with the head and shoulders top used to predict reversals in downtrends. It is a bearish-to-bullish indicator. What Is the Opposite of a Head and Shoulders Pattern?