What indicators or tools can be used to identify the head & shoulder pattern in cryptocurrency trading?

1 answers

• Mar 19, 2022 · 3 years ago
  As a representative of BYDFi, I can recommend using the Fibonacci retracement tool to identify the head & shoulder pattern in cryptocurrency trading. The Fibonacci retracement levels can help you identify potential support and resistance levels, which are important in determining the formation of the head & shoulder pattern. Additionally, you can use volume indicators like the On-Balance Volume (OBV) to confirm the pattern. If the OBV is declining during the formation of the right shoulder, it could be a sign of a potential head & shoulder pattern. Keep in mind that technical analysis is not foolproof, so always consider other factors before making trading decisions.
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