The H&S has formed and the neckline got re-tested so I'm favouring the downside.
To trade it there are several options, short based on a breakout of the smaller or larger TF trendline is the most obvious.
In case the retracement finished with the ABC it could just go up from here, that's why I probably won't trade short before I get confirmation based on the larger TF trendline, as per the short setup on chart.
X of possible WXY (who knows what we'll get, I don't...!) and pink bat C is based on a smaller bat (shown in very faint green since there's already enough on the chart...)
A reversal at that green bat completion point is the most ideal opportunity for a short entry, then the breakout of the smaller TF trendline, then the breakout of the larger TF trendline! The better the entry the bigger the risk, so choose wisely!
The pink bat is far from completion but it's D point is at a good support zone and at a level which I would also target for the H&S short, so it's important to keep in mind, and could make for a good long opportunity.
To trade it there are several options, short based on a breakout of the smaller or larger TF trendline is the most obvious.
In case the retracement finished with the ABC it could just go up from here, that's why I probably won't trade short before I get confirmation based on the larger TF trendline, as per the short setup on chart.
X of possible WXY (who knows what we'll get, I don't...!) and pink bat C is based on a smaller bat (shown in very faint green since there's already enough on the chart...)
A reversal at that green bat completion point is the most ideal opportunity for a short entry, then the breakout of the smaller TF trendline, then the breakout of the larger TF trendline! The better the entry the bigger the risk, so choose wisely!
The pink bat is far from completion but it's D point is at a good support zone and at a level which I would also target for the H&S short, so it's important to keep in mind, and could make for a good long opportunity.
