I have decided to start a short series of tutorials covering common instruments used in technical analysis.
In today's tutorial, we observe a successfully identified head and shoulders pattern on the 4-hour chart of Crude Oil, resulting in a substantial movement of around 17%.
Here's how to find the instrument: navigate to the left sidebar and select 'Patterns,'...
Usually the head and shoulders pattern perform at the end of channel up as a sign of a reversal trend.
In this chart, we can see channel already broken on October 23, but the right shoulder has not fully performed yet.
To trade with this pattern, we have a several conditions :
1. Wait for right shoulder to completely perform to touch neckline at 1.0530. As long...
Greetings, Financial Enthusiasts! 🌟 If you appreciate our charts, give us a quick 💜💜
The Head and Shoulders pattern is a well-known chart formation in technical analysis. It indicates a reversal from a bullish to a bearish trend, usually at the end of an upward trend.
Key Points:
- Head and Shoulders: Chart pattern signaling trend reversal.
- Formation:...
As a forex trader, it's essential to have a robust arsenal of technical analysis tools at your disposal. One of the most powerful and reliable chart patterns you can use is the "Head and Shoulders" pattern. This pattern is prized for its ability to signal potential trend reversals, allowing traders to make informed decisions and capitalize on market opportunities....
⚡Zer0_Trader
The essence of the strategy is to search for the direct and inverted "Head & Shoulders" pattern
Shoulders" pattern with the simultaneous confirmation of its potential workout on
Zer0 Trader Indicator" indicator, which makes it possible to trade regularly,
minimizing the closing of trades...
To answer this question, let's try to take a classic Pattern as an example: the "Head and Shoulders" .
Typically Traders take short position (in this example) on neckline breakout and place stop loss above right shoulder or head.
If we only take these elements into consideration, it often happens that pattern fails.
Why does this happen? Because these elements...
📍How to Identify and Use the Head and Shoulders Pattern
The head and shoulders pattern is characterized by key features to look out for on trading charts. It typically occurs after a bullish uptrend when buying pressure begins to fade. The pattern includes a left shoulder, a higher middle peak, and a right shoulder approximately at the same level as the left...
BTC is in a good setup for a head and shoulders to the downside. The head and shoulders is a bearish pattern where the price bounces and returns to the "Neckline" support level the 3 times with the final return resulting in a break of neckline support.
How to spot
The easiest way to spot a head and shoulders is to find a support level that the price is...
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...
ZigZag's primary goal is to focus on significant swings and trends by removing insignificant and misleading price changes.
ZigZag connects the price's highest and lowest points using straight lines while ignoring minor swings.
ZigZag just aims to make sense of the market's previous movements; it makes no attempt to predict the price of an item.
It is only based...
Head and Shoulders pattern
This lesson will cover the following
What is a “Head and Shoulders” formation?
How can it be confirmed?
How can it be traded?
The Head and Shoulders pattern forms after an uptrend, and if confirmed, marks a trend reversal. The opposite pattern, the Inverse Head and Shoulders, therefore forms after a downtrend and marks the end of...
Hello, my dear friends and happy New Year!
I wish you to be healthy and reach all your goals in trading and not only! Never give up on this difficult way which we are going to overcome together!
Today we have a very important topic. How to use Elliott waves instead of classical chart patterns. This is the natural exposure why the chart patterns are garbage. I...
Head and shoulder definition: A simple head and shoulders top formation is characterized by a peak representing
the left shoulder, followed by a higher peak which is referred to as the head of the formation. A lower peak representing the right shoulder is found on the right‐hand side of the head. The head should be the highest peak in the formation. The...
You probably heard of the Head and Shoulders chart pattern. There are two versions of the 'Head and Shoulders' in the markets. The pattern that resembles a human figure standing upright is the BEARISH version where we would like to see SELLS in the market.
The pattern that resembles a Human figure hanging upside-down is called the "Inverted Head and Shoulders"...
*The Head and Shoulders ( Bearish ) pattern is one of the most popular and best known price patterns in trading.
This is a very accurate trading signal if you know how to use it properly and flexibly.
*What is Head and Shoulders? How to identify and characterize
Head and Shoulders is the name of a special type of price pattern that usually appears at the end of...
What is General Pattern Failure?
General Pattern Failure occurs when a chart pattern breaks out, fails to hit target, quickly reverses then rejects off that same breakout level back inside the pattern continuing in the opposite direction of the breakout.
Pictured above in the original chart is a normal breakout on a Inverse Head And Shoulders Pattern while the...
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...
