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Message Subject XRP-tards, get in here. (Crash imminent? Final XRP moon in august 2021)

Poster Handle T-Man

Post Content

...

What type of fuel? Like a televised event with Elon to promote bitcoin? ghehehe

what is the head and shoulders thing even based on? other than the look of the graph. like what motivates the movement? Or is it merely an observation?

Quoting: T-Man

A head and shoulders shows that there are increasingly less buyers in a market over a period of time.

1...........2............3
............BBB....
............B....B....
BBBB....B.....B....BBB
B....B...B......B....B...B
B....BBB.......BBBB....B
___________________ 4.
B............................B 5.
B............................B
B............................B

0.

Start above at the 0. Follow the B's through the numbers 1,2,3,4,5 in order.
The 1 impuse was buyers pushing a price up
The 2 impuse was buyers pushing it even higher
The 3 impuse was buyers trying to push it up higher but failing at the same line as impulse 1. It implies there are less people buying. More people selling. As soon as it breaks below the 4 which is called the "neckline" it is confirmed as valid head and shoulders. Until it breaks below the 4 it is only theoretical and not at all guaranteed. It could go up again. Once price reaches the 5 it is confirmed a head and shoulders and doom happens.

Quoting: Mr. Cheeze

So basically its just a name you can give to a part of the graph in hindsight? (or is that too simple?)
so if it does go up from here its simply no longer a head and shoulder pattern? or i mean its still a complete head and shoulders that transformed into a second head?

but overall it would make most sense for people to lose all hope now and for it to completely collapse down the arm.

the timing of tomorrows btc event is kind of special imo.
even tho, like you, i dont give it any power, but it can be used to sell a market change.. (that might be organized)

i dont give elon this power at all. but people keep referring to his interview or negative comments as the 'start' of the second shoulder back in may.

we will see. interesting time

Quoting: T-Man

Head and Shoulders pattern...and all patterns...are based on human psychology.

Pain and pleasure.

Head and Shoulder Pattern is basically the tiny pleasure from first shoulder, then ecstatic pleasure from head, then a painful realization it was not a meaningful move when goes back down to the last shoulder. At that point you realize you are right back at where you started. It invalidates the entire pattern. those buying at first shoulder are even(after seeing huge gains disappear) those who bought in the head are losing money and those buying at the last shoulder are betting on volume from news or fundamentals or they just don't see it... What usually happens is the last shoulder breaks downward and you get the first shoulder buyers feeling pain...and they sell.. The head buyers who didn't sell yet definitely sell...and the last shoulder gamblers usually sell as well... You basically blow up the entire price action.

BTC has a massive one now threatening to invalidate most of run from winter..

Nothing is guaranteed.

But these are the psychological forces... Whos making money right now? Who's losing money? How does this effect decision making?

it usually breaks down in this pattern because even if it goes up initially everybody who bought in the head is trying to cut loses or break even so they sell.. Everybody who bought at first shoulder is desperate to sell at a little profit after seeing big gains disappear into break even... And last shoulder buys usually understand the other two motives and sell for profit on a day trade.

All these reasons is why head and shoulders usually indicates further downward movement.

Quoting: Anonymous Coward 47150689

Thank you (and Cheeze also!) for the head and shoulder info.

so the pattern is basically late retail investors reacting to the first shoulder? what caused the first shoulder? what kicked it off in October?

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