IMX Short opportunity & the big picture
The IMX/USD pair has formed a Head and Shoulders pattern ( when you view on a weekly time frame ). The H & S pattern is a chart formation that predicts a bullish-to-bearish trend reversal and is one of the most reliable trend reversal patterns. Here’s a simple breakdown:
Formation: It appears as a baseline with three peaks; the middle peak (head) is the highest and the two outside peaks (shoulders) are lower.
Entry Signal: A break below the neckline (support level) after the formation of the second shoulder gives the sell signal.
Volume: Typically, volume is highest when the left shoulder is formed, decreases through the head, and is lowest when the right shoulder is formed.
Target Price: After the breakout, the target price can be estimated by measuring the distance from the head to the neckline and extending it downward from the breakout point.
It’s important for traders to wait for the complete formation of the pattern before making any trades based on it. Remember, while patterns can indicate probable market movements, they do not guarantee them. Always use stop-loss orders to manage your risk
Formation: It appears as a baseline with three peaks; the middle peak (head) is the highest and the two outside peaks (shoulders) are lower.
Entry Signal: A break below the neckline (support level) after the formation of the second shoulder gives the sell signal.
Volume: Typically, volume is highest when the left shoulder is formed, decreases through the head, and is lowest when the right shoulder is formed.
Target Price: After the breakout, the target price can be estimated by measuring the distance from the head to the neckline and extending it downward from the breakout point.
It’s important for traders to wait for the complete formation of the pattern before making any trades based on it. Remember, while patterns can indicate probable market movements, they do not guarantee them. Always use stop-loss orders to manage your risk