FTMUSDT - Inverse Head & Shoulders - A Prime Long Opportunity?
2024-11-08


 Quick Overview
 
 

On the FTM/USDT 4-hour chart, an inverse Head & Shoulders pattern is shaping up, often hinting at a bullish reversal. If the pattern completes, this could offer an excellent long setup. The key level to watch is around the mOpen at $0.6555, where the price is expected to dip and complete the “right shoulder,” potentially setting the stage for a strong bounce.

 
 Deep Dive: Chart Analysis
 

Inverse Head & Shoulders Pattern:
 Left Shoulder: Formed near $0.6342.
 Head: A deeper low at $0.4744, marking the low point of the pattern.
 Right Shoulder (In Progress): Expected to complete around mOpen at $0.6555. If the price touches down here and holds, it could serve as an ideal long entry point.

Fibonacci Retracement:
 The 0.382 Fibonacci retracement level aligns near $0.6555, supporting the right shoulder as a potential bounce zone.

Key Levels to Watch:
 mOpen at $0.6555: This is our primary entry level, where the right shoulder could find support.
 VAL (Volume Area Low) at $0.6324: Another important support zone where the anchored VWAP also aligns, reinforcing this area as a significant base. If the price dips below mOpen, the VAL may act as a secondary support level.
 VAH (Volume Area High) at $0.7235: Our initial target if the inverse Head & Shoulders completes, with potential for further gains.

Volume Profile:
 Increased volume near the head formation suggests accumulation, supporting a bullish scenario if the right shoulder completes as expected.

 
 Trade Setup
 

 
 Entry: Look for a long entry around $0.6555.
 
 
 Stop Loss: Place the stop loss just below $0.58 to manage risk if the pattern fails.
 
 
 Target: Initial target at $0.7235 with room for more upside if the breakout continues.
 
 
 Risk-to-Reward: Favorable setup with solid support and a high-probability bounce area.
 

 
 Final Thoughts
 
 
With the combination of the inverse Head & Shoulders, support at mOpen, Fibonacci, and anchored VWAP at the VAL, this FTM/USDT setup looks promising for a long position. Watch for confirmation around $0.6555 to see if the right shoulder completes.

Disclaimer

This analysis is for educational purposes and should not be taken as financial advice. Always do your own research and manage risk carefully!