Head And Shoulders
Daily JPY/CHF chart shows the last move up before the move past the support neckline. To gain more info we
need to draw our average channel of movement to get the best idea of where this pair is going.
Placing an orange resistance from the top of point A gives us a certain average high price.
Now we do the same for our support line, add a resistance lie to the bottom of point C we get our worst low point.
Finding an average price with our purple line is placed giving us an idea of when or whether to buy or sell. Drawing
a two-point resistance from point A to point B gives us our current average direction. do the same for point B and
point C for our average support. If the price falls below the purple and downward black resistance line then we
more safely assume a short position.
of course, it is highly suggested to do the same information-gathering if price decided to break upwards, but for this,
we are trying to find a short opportunity.
Using our range bar of 100R use the predetermined length of the bar and place it at our currents bars current low
and another at its current high to see which moves agree with our other info/lines we have drawn and found. Our range
bar translated into a candle chat shows the price from this moments' high is going to hit our red C point average line.
Now for our Head And Shoulders pattern to form correctly is the bounce off the neckline to finalize the strength of
the bears. we saw our bounce off the neckline at point D with a reasonable move upward to test the making of the
shoulders support.
Daily JPY/CHF chart shows the last move up before the move past the support neckline. To gain more info we
need to draw our average channel of movement to get the best idea of where this pair is going.
Placing an orange resistance from the top of point A gives us a certain average high price.
Now we do the same for our support line, add a resistance lie to the bottom of point C we get our worst low point.
Finding an average price with our purple line is placed giving us an idea of when or whether to buy or sell. Drawing
a two-point resistance from point A to point B gives us our current average direction. do the same for point B and
point C for our average support. If the price falls below the purple and downward black resistance line then we
more safely assume a short position.
of course, it is highly suggested to do the same information-gathering if price decided to break upwards, but for this,
we are trying to find a short opportunity.
Using our range bar of 100R use the predetermined length of the bar and place it at our currents bars current low
and another at its current high to see which moves agree with our other info/lines we have drawn and found. Our range
bar translated into a candle chat shows the price from this moments' high is going to hit our red C point average line.
Now for our Head And Shoulders pattern to form correctly is the bounce off the neckline to finalize the strength of
the bears. we saw our bounce off the neckline at point D with a reasonable move upward to test the making of the
shoulders support.