Volume plays a crucial role in the Head and Shoulders Bottom, more so than top. With light volume on the pullback suggesting profit taking rather than heavy sell pressure and CMF and OBV indicators remaining positive it suggests a high likelihood of a breakout.
Reviewing the structure on the daily the volume trend, indicated by the Chaikin Money Flow (a version of), is playing out as an inverse H&S. Momentum looks like it will swing and MFI signal is good. The concerns is with the OBV which is relatively low and below 0. If BTC can break the resistance at 6400 we should be back up to the neckline by tomorrow.
Expecting investors to but in to the ETF dream on the 10th - I'll sell the news.
HF
Kommentera
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Concerned about the OBV - expecting drop - possibly temporary
Kommentera
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There was a small decline but in general the pattern was a textbook inverse H&S. I don't understand how traders could call this so early as the volume pattern was only noticeable during the right shoulder.