It all starts after breaking the resistance line of the lateral movement.
The lateral movement is nothing more than the accumulation of force for the subsequent take-off.
After the collapse, the price rises, creating new highs, correcting from time to time.
All this continues until the last peak is formed – the head.
The head is characterized by a large price rise at the beginning, after which there is a sharp drop.
The fall is characterized by large volumes that grow until the breakage of the left shoulder line.
After that, the formation of the right shoulder begins.
In this situation, the price can break the 50-day moving average line several times.
The lightning entry point
After several advances in the moving average, the price will plunge down.
The ideal entry point will be the last breakout of the moving average.
It is very difficult to determine and enter the position at the sweet spot, so you can try to enter after breaking the neckline or a little higher.
These situations are common in all markets and provide a great opportunity to make a profit if everything is done correctly. Sometimes the price can drop even below the sideways move that started it all. Do not forget about the risks, good luck!