Head and Shoulders Patterns

Head and Shoulders Pattern on XRPUSD

Head and Shoulders Pattern on XRPUSD

Head and Shoulders Pattern on XRPUSD might signal that something huge is going to happen in crypto market. Let’s see why I’m thinking like that.

The premise

If we take a look at the daily chart of XRPUSD we can easily spot a SHS pattern (also known as top head and shoulders pattern). Considering that usually the entire crypto market is correlated this pattern might signal something bigger. And, the main reason why I’m saying that is because of volume. So, let’s take a closer look at the XRPUSD daily chart.

Head and shoulders on XRPUSD

The volume is the key

Now, if you take a look at daily chart of XRPUSD you’ll see that the volume looks a bit different than usual. And, for me, that’s a first clue. So, let’s take a look at the volume at Weekly chart of XRPUSD, ETHUSD (ethereum), LTCUSD (litecoin) and BTCUSD (bitcoin).

XRPUSD weekly chart, head and shoulders is not visible here
ETHUSD weekly chart
LTCUSD weekly chart
BTCUSD weekly chart

To clarify it, there’s huge volume bar on each chart. That must mean something. Can we witness the fact that the ownership is being moved from strong hands to weak hands, as Peter Brand explains in his article here: 8 years of global Silver supply changed hands last week?

Do we have a tradable head and shoulders pattern?

As far as I’m concerned, I established the risk, the reward and I already placed a sell stop order at XRPUSD. I chose it because it presents the cleanest pattern from all the cryptos. We’ll see what we’ll get from this trade. Therefore, all we have to do now is to wait and see.

The conclusion

My conclusion is that everything is possible. In other words, we can’t be sure what will happen. However, we must be prepared. And, I don’t know a better preparation than an order in its place.

P.S. Remember: you can always check my verified trading results here.

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