BNB/USDT inverse head & shoulders (long)

Mar 21, 2022

following the FOMC meeting and widespread uncertainty, btc was marked-up to a high of +12% over the past week and currently sits up +9%. uncertainty remains, but the recent price action suggests that it is safe to buy dips for another leg up. BNB appears to have been undergoing a 3 month accumulation period and is showing a potential inverse head & shoulder pattern on higher timeframes. for a risk-averse trade, i’d like to see BNB come down to make a more pronounced right shoulder before breaking out of the range to test resistance. entry is based on left shoulder and horizontal support, stop-loss is below the bottom of the range, and tp is at first anticipated resistance. if strong support is demonstrated at the trend line, i will consider splitting the entry in half and buying a bounce near the trend line.

Apr 1, 2022

Note

update: pronounced right shoulder never occurred, entry never filled. trade idea cancelled. it would have been wise to buy after price broke out of the upside resistance and flipped it to support.