Hello all. Today we will talk about the reversal pattern "Quasimodo" or QML. Schematically it looks like this: The price moves in the trend, in POI the structure breaks and after that, the price can not update the previous HH and the downward movement continues (consider a schematic example). In this example, after the breakdown of the structure, the price...
In this series about chart patterns we previously discussed narrowing wedges patterns, explaining their identification rules, the measure rule associated with them, and various observations. In this post, we will cover head & shoulders, inverse head & shoulders, and their complex counterpart. We will cover their identification rules, measure rules, and share some...
Head and Shoulders Definition: A head and shoulders pattern is also a trend reversal formation. It is formed by a peak (left shoulder), followed by a higher peak (head), and then another lower pea k (right shoulder). A “Neckline” is drawn by connecting the lowest points of the two troughs. Neckline support does not need to be strictly horizontal. ....
Although our basic stock trading methodology is based on trend following, there are certain types of technical chart patterns we also trade. Of these, the head and shoulders is one of the most reliable and profitable types of technical trade setups. In this article, we will discuss how to identify the chart pattern and capitalize on it. Let’s begin by looking at a...
Anatomy of Failed Head and Shoulder
Possible H&S ? Can we see a fall down to 1.68919 support line ? Please tell me if this even counts as H&S, I will be very grateful. Any objections/suggestions are welcome.