Inverted Head & Shoulders Early Entry Setup
Updated
Timeframe: 15 Minutes
Analysis Type: Technical
Pattern Overview
The chart highlights a bullish Inverted Head & Shoulders (H&S) pattern, signaling a potential trend reversal. Key components include:
Left Shoulder: Formed near $94,800.
Head: Created at the low of $93,500.
Right Shoulder: Developing near $94,500-$94,800.
The neckline is at $96,000, representing significant resistance and a breakout trigger level.
Key Zones
Order Block (OB):
Bullish OB between $94,348 and $95,000, acting as a critical support zone.
Sell OB or Liquidity Zone:
Resistance near $99,000, identified as a profit-taking or liquidity grab area.
Trade Plan
Entry Condition:
Enter the trade after a confirmed breakout of the descending channel and a strong close above $96,000.
Note: Entry price may vary depending on where the breakout occurs.
Stop Loss (SL):
Place the stop-loss below the bullish order block or recent swing low. This level may vary based on where the breakout happens.
Take Profit (TP):
Target 1: $99,000 (Sell OB/Liquidity Zone).
Target 2: $103,000 (Measured Move of H&S pattern breakout).
Risk Management
Reward-to-Risk Ratio (RRR): Approximately 3:1 for TP1 and 5:1 for TP2.
Adjust position size based on the distance between your entry and stop-loss levels.
Supporting Indicators
Descending Channel Breakout: A breakout confirms bullish momentum and pattern validation.
RSI Divergence: Check for bullish divergence to strengthen the reversal signal.
Expected Path
The price may retest the order block ($94,348–$95,000) before surging towards the neckline ($96,000).
Upon breaking the neckline, expect the price to target $99,000 initially and potentially $103,000.
Disclaimer: Entry price and stop-loss levels depend on the point of breakout. Always perform your due diligence and adjust based on real-time market conditions.
Analysis Type: Technical
Pattern Overview
The chart highlights a bullish Inverted Head & Shoulders (H&S) pattern, signaling a potential trend reversal. Key components include:
Left Shoulder: Formed near $94,800.
Head: Created at the low of $93,500.
Right Shoulder: Developing near $94,500-$94,800.
The neckline is at $96,000, representing significant resistance and a breakout trigger level.
Key Zones
Order Block (OB):
Bullish OB between $94,348 and $95,000, acting as a critical support zone.
Sell OB or Liquidity Zone:
Resistance near $99,000, identified as a profit-taking or liquidity grab area.
Trade Plan
Entry Condition:
Enter the trade after a confirmed breakout of the descending channel and a strong close above $96,000.
Note: Entry price may vary depending on where the breakout occurs.
Stop Loss (SL):
Place the stop-loss below the bullish order block or recent swing low. This level may vary based on where the breakout happens.
Take Profit (TP):
Target 1: $99,000 (Sell OB/Liquidity Zone).
Target 2: $103,000 (Measured Move of H&S pattern breakout).
Risk Management
Reward-to-Risk Ratio (RRR): Approximately 3:1 for TP1 and 5:1 for TP2.
Adjust position size based on the distance between your entry and stop-loss levels.
Supporting Indicators
Descending Channel Breakout: A breakout confirms bullish momentum and pattern validation.
RSI Divergence: Check for bullish divergence to strengthen the reversal signal.
Expected Path
The price may retest the order block ($94,348–$95,000) before surging towards the neckline ($96,000).
Upon breaking the neckline, expect the price to target $99,000 initially and potentially $103,000.
Disclaimer: Entry price and stop-loss levels depend on the point of breakout. Always perform your due diligence and adjust based on real-time market conditions.
Trade active
Now is took support at the Order Block. We can take long with the given stop loss
Disclaimer
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