DITO is trying to create an inverted head and shoulders pattern.
There is a lot to unpack here so let me go through it one by one.
The first is the inverted head and shoulders pattern. The price needs to go to a downtrend for it to be able to create an inverted head and shoulders pattern. This pattern shows up at the end of a downtrend that is why it is being considered as a bullish reversal pattern. The downtrend is for the creation of the first shoulder. It needs to come from a higher price sliding down.
Contrary to what others think, there is no perfect head ans houlders or inverted head and shoulders pattern. Its not about the pattern being perfect. Its all about what the pattern shows you. There should be a downtrend then the price bottoms. It stops going down. It starts going up again from that first bottom then it will hit some form of resistance that it cannot break. It will slide down again. The second slide is deeper. It will find its bottom but that bottom is lower than the first bottom. It will again start to go up. It will hit some form of resistance again, It will go down for the third time. The third slide down is not as deep as the second slide hinting at some form of buying pressure that is present. After the third slide, it will go up again and it will finally break that "unbreakable" resistance level which we call "the neckline."
When the neckline is broken then and only then is the time you make an entry. Your stoploss should be placed below the last bottom or what we call the "right shoulder."
In fairness to DITO, there is still some room for the price to go down before it starts to go up and break that neckline (If this is indeed a successful inverted head and shoulders pattern).
The price to watch is 1.20 pesos. If the price breaks 1.2 pesos then you enter. Put a stoploss at 0.99 pesos upon entry.
Neckline break is the only thing that matters to an inverted head and shoulders. Wait for it to happen before any entry. Do not try and enter early. Be patient. Lets see what happens to this tarde.
There is a lot to unpack here so let me go through it one by one.
The first is the inverted head and shoulders pattern. The price needs to go to a downtrend for it to be able to create an inverted head and shoulders pattern. This pattern shows up at the end of a downtrend that is why it is being considered as a bullish reversal pattern. The downtrend is for the creation of the first shoulder. It needs to come from a higher price sliding down.
Contrary to what others think, there is no perfect head ans houlders or inverted head and shoulders pattern. Its not about the pattern being perfect. Its all about what the pattern shows you. There should be a downtrend then the price bottoms. It stops going down. It starts going up again from that first bottom then it will hit some form of resistance that it cannot break. It will slide down again. The second slide is deeper. It will find its bottom but that bottom is lower than the first bottom. It will again start to go up. It will hit some form of resistance again, It will go down for the third time. The third slide down is not as deep as the second slide hinting at some form of buying pressure that is present. After the third slide, it will go up again and it will finally break that "unbreakable" resistance level which we call "the neckline."
When the neckline is broken then and only then is the time you make an entry. Your stoploss should be placed below the last bottom or what we call the "right shoulder."
In fairness to DITO, there is still some room for the price to go down before it starts to go up and break that neckline (If this is indeed a successful inverted head and shoulders pattern).
The price to watch is 1.20 pesos. If the price breaks 1.2 pesos then you enter. Put a stoploss at 0.99 pesos upon entry.
Neckline break is the only thing that matters to an inverted head and shoulders. Wait for it to happen before any entry. Do not try and enter early. Be patient. Lets see what happens to this tarde.
Traders Den PH
blogs.tradersdenph.com
blogs.tradersdenph.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Traders Den PH
blogs.tradersdenph.com
blogs.tradersdenph.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.