I've marked the SHS (Head and shoulders) pattern on this USDCHF chart. In this case, SHS has potentially big bullish power because:
1] It appeared around 2019 Low. From this view, all SHS lows could be interpreted as the attempt to breakdown the lowest level of 2019. But all these attempts are turned into fails because as soon as price penetrated 0.9662 level - ... it has quickly recovered up without any chances foe bears to settle lower.
2] Panic Wave
3] Selling Pressure goes down after a Panic wave
4] The right shoulder represents the Final Trap - Quick High-volume column aimed to knock out bulls and attract bears in Fake Breakdown. This is a typical ending for the Accumulation Stage.
5] Demand Surge. The official change in market behavior.
More pieces of evidence could be found on the Crowd Behavior indicator (not shown here).
Blue Down-Lines now are broken out. Pink lines have priority, the path of least resistance is pointing upward.
1] It appeared around 2019 Low. From this view, all SHS lows could be interpreted as the attempt to breakdown the lowest level of 2019. But all these attempts are turned into fails because as soon as price penetrated 0.9662 level - ... it has quickly recovered up without any chances foe bears to settle lower.
2] Panic Wave
3] Selling Pressure goes down after a Panic wave
4] The right shoulder represents the Final Trap - Quick High-volume column aimed to knock out bulls and attract bears in Fake Breakdown. This is a typical ending for the Accumulation Stage.
5] Demand Surge. The official change in market behavior.
More pieces of evidence could be found on the Crowd Behavior indicator (not shown here).
Blue Down-Lines now are broken out. Pink lines have priority, the path of least resistance is pointing upward.