Today we will consider a frequently occurring formation that can bring you big profits.
Beginning
It all starts after breaking through the resistance line of the lateral movement.
Lateral movement is nothing but the accumulation of force for subsequent takeoff.
Upward movement
After the breakdown, the price goes up, creating new highs, correcting from time to time.
All this continues until the last peak is formed – the head.
Head
The head is characterized by a large price rise in the beginning, after which there is a sharp drop.
The fall is characterized by large volumes that grow until the breakdown of the left shoulder line.
Right shoulder.
After that, the formation of the right shoulder begins.
In this situation, the price may break through the line of the 50-day moving average several times.
The ray point of entry.
After several breakthroughs of the moving average, the price will make a dash 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 ideal point, so you can try to enter after breaking the neck line or a little higher.
Conclusion
Such situations are common in all markets, giving a huge opportunity to make a profit if everything is done correctly. Sometimes the price can fall even below the sideways movement that started it all. Don't forget about the risks, good luck!
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Share your opinion in the comments and support the idea with Like.
Thanks for your support!
Beginning
It all starts after breaking through the resistance line of the lateral movement.
Lateral movement is nothing but the accumulation of force for subsequent takeoff.
Upward movement
After the breakdown, the price goes up, creating new highs, correcting from time to time.
All this continues until the last peak is formed – the head.
Head
The head is characterized by a large price rise in the beginning, after which there is a sharp drop.
The fall is characterized by large volumes that grow until the breakdown of the left shoulder line.
Right shoulder.
After that, the formation of the right shoulder begins.
In this situation, the price may break through the line of the 50-day moving average several times.
The ray point of entry.
After several breakthroughs of the moving average, the price will make a dash 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 ideal point, so you can try to enter after breaking the neck line or a little higher.
Conclusion
Such situations are common in all markets, giving a huge opportunity to make a profit if everything is done correctly. Sometimes the price can fall even below the sideways movement that started it all. Don't forget about the risks, good luck!
-------------------
Share your opinion in the comments and support the idea with Like.
Thanks for your support!
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bit.ly/3spSQqC
🔻FREE Telegram channel🔻
t.me/DeGRAMChannel
🔻Contact for Paid SIGNALS🔻
t.me/DeGRAMForex
