Head and shoulders pattern are one of the most reliable patterns with extensive academic evidence supporting its use to improve trading profitability.
Head and shoulders pattern in the real world often look far more complex and a lot messier than the textbook images.
Auro Pharma is in process of forming head & Shoulder pattern, completion of left shoulder & head has been done right shoulder formation is in process. Once it break neckline trade can be executed.
Target : The profit target for the pattern is the price difference between the head and the low point of either shoulder. This difference is then subtracted from the...
Classic tools are simple yet powerful tools but if and only if you know when to use them, otherwise they can be very misleading.
A good example of such pitfalls is inverse head and shoulders at the end of wave A. Traders who rely on this pattern regardless of its position in terms of Elliott waves may expect a new major high and become ready to make a nice profit...
Everytime you see a pattern like the one shown on the graph you can start watching for possible short entries. For stronger confirmation the right shoulder should be lower then the left one (not exactly what happens in this exemple but still an Head and Shoulder Pattern).
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Inverted Head and Shoulders Definition:
A head and shoulders pattern is also a trend reversal formation.
It is formed by a Valley (left shoulder), followed by a Lower Valley (head), and then another Higher Valley (right shoulder).
A “ Neckline ” is drawn by connecting the highest points of the two Peaks....
Here we have a nice example of the INVERTED HEAD & SHOULDERS PATTERN.
It's a simple pattern and easy to spot but
bear in mind that it isn't always look perfect.
It offers a very good Risk To Reward ( 1:5.5 = 550 pips).
SO TRAIN YOUR EYES TO SPOT THEM & CATCH THAT BIG MOVE ! ! !
A Double Top formation on D1 followed by another Head & Shoulder Price Action Pattern on H4 which gives me Kicker to Trigger the Short option on this pair on the upcoming week.
Also to keep in Mind if not H&S on H4, then a Double Top from the same can also give me a good Sniper entry to go Short.
Depending on the Kicker and will decide my SL level but TP not...
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.
....
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.
....
The head and shoulders chart pattern is a price reversal pattern that helps traders identify when a reversal may be underway after a trend is exhausted. It is of two types: Head & Shoulder and Inverse Head & Shoulder. This reversal could signal an end of an uptrend or downtrend. (Inverse Head & Shoulder with an end to downtrend in this case)
Inverse Head &...
Its clear on the chart. possibility that ltc might be going lower to the $40 - $50 region based on past chart.
Please leave a like or comment, will be much appreciated.
Note: THis is not a financial advice. Just my opinion on what I think and shared just for record purposes.
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...
GBPAUD May give us a great sell opportunity if the price break the Head and shoulder neck line. for who don't know what is the Head and shoulder Pattern it is >
One of the most popular Chart Pattern. This pattern appears on all times frames and can therefore you can use it if you are a swing trader or a Daily trader.
Formation of the pattern
1. Up trend
2. It...
Many of the educational posts out there are mere examples of past chart patterns that have already completed themselves. Which this is an excellent way to study data and to help predict future movements, it tends to create over-confident traders.
As many of us know that there is no 100% guarantee to any chart pattern. However many people, myself included,...
BITFINEX:BTCUSD
"The chart speaks louder than words"
Daily bitcoin technical analysis with fewer words and more information so that you can have maximum information just with a glance without wasting any time.
Any thoughts on technical analysis of BTC are always welcome in Comment Section. If you find this article useful then do consider a like .
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