BTCUSD 4h overview
Take a look at Chart 1 (above). We have 1-2-3 Head and Shoulders pattern about to complete. What additional information could be extracted to confirm this classical pattern? Enable Chart Reading view.
4/ This is a typical SLKT. It penetrates the round number 7400, it also penetrates the previous minor high (follow red arrow). A lot of Buy-Stops of bears were triggered. By this way, sellers were knocked out from their shorts.
Now switch to Сhart 2:
5/ the SLKT in details. If these green orders represent the real buying (power, why price declined then soon?
6/ This is real genuine selling pressure. It confirms that quick spike /5/ was designed to attract Bulls in the trap and Stop-out bears. Note this declined did happen fast. The high speed needed to lock in Trap as many losers as possible.
Wave chart 3 confirms the bearish dominance.
What is next and how to act?
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