A head and shoulders pattern is a chart formation that resembles a baseline with three peaks, the outside two are close in height and the middle is highest. In technical analysis, a head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal. A head and shoulders pattern is comprised of three component...
While the market is sideways, here is an outline of the H&S pattern we have been watching play out on Bitcoin. Even if you already know what it is, nothing replaces repetition to ingrain these patterns into your mind! This should not be the basis of your trading, only something to pay attention to while keeping risk management in the forefront. - Formed with...
THE FRACTURE MODEL “HEAD AND SHOULDERS” The most well-known and, thus, the most convenient fracture model is H&S. Let’s review it in details, as other models appear its variations. This key fracture model, as well as others, is a direct logical continuation and development of those statements connected with the tendency, which were discussed. Imagine a...
Hi there, welcome to another educational post dealing with fractals. Again i will derive a possible path from a pattern which is not yet completed. So beware that there are many IFs,WOULDs and LIKEHOODs on the way to completion. The market will decide when to go where. IF the pattern gets invalidated we all will be happy in the sight of one thing less to worry...
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,...
Hello everyone, Sorry for the messy chart but I promise its very very helpful. Try reading it as a story, that should help you get the idea. Also, try zooming in and out to have a better view of the wave at any certain point. Sometimes its good to look back at charts and see what you've done wrong and how you missed some signs. Personally, I did not trade every...
Hello dear friends, this is more of a study than a chart. Here is what i did: * I sampled 16 IHS that showed over the past year and were visible on the 4hr chart. * I took in consideration sloppy patterns but ignored the ones that didn't complete or patterns that were too small or too big to discern on the 4hr. * targets are calculated roughly based on the...
This is the dilemma with technical analysis, here we have a situation where we have technicals supporting a move upward and downwards. This situation is very common with technical analysis, in most cases there are technicals supporting both the bulls and the bears and hence making decisions solely based on technicals is 50/50 in most cases. We have the 50 fib...
MCD stock price formed a head and shoulders pattern. The first part of a head and shoulders pattern is an uptrend, bounces making a first top (left shoulder), then it goes down and makes a minimum. Now that the left shoulder has formed, the price moves higher and makes a second top (HEAD), higher than the left shoulder, then it goes down and makes another minimun...
As we see, price formed a high (left shoulder) The correction was pretty tough, went back nearly all the way (first weak signal that SHS might be forming) the next high could not get much higher (head) the correction was very tough again and went back to the level of the former correction, The next high (right shoulder) could not go higher than the second (head),...
Pattern: head and shoulders Pattern type: reversion (uptrend ---> downtrend)
How to Trade the Inverted Head and Shoulders Pattern Hello traders, following up from my educational post on the Head and Shoulders pattern I felt I should provide you with the bullish equivalent... The Inverted Head and Shoulders pattern. Featured on the chart is an illustration of a complete Inverted/Inverse Head and Shoulders pattern including the rules I...
How to Trade the Head and Shoulders Pattern Hello traders, following up from my previous educational post I received several requests via private message for my take on the Head and Shoulders pattern. Featured on the chart is an illustration of a complete Head and Shoulders pattern including the rules I personally use to trade it. This is an easily...
How to confirm an H&S pattern using Stochastic: 1- looking for an H&S pattern on chart 2- stochastic "d line" must follow the same 1-2-3 structure. Point 2 have to be higher than the other 2 How I trade it: - SL some pips under head - Risk/Reward of 3 - Enter one candle after right shoulder confirmation
Head and Shoulders Pattern is a reversal market trend formation which presents 3 main characteristics that can considered as a strong market uptrend, 2 shoulder having approximately the same height and a pick which higher than the shoulders, located in between called the head, once again, one of the main point here remain the importance to observe the formation...
"Since the beginnings of technical analysis, classical technical patterns have been repeating over and over in all time frames and in all markets. It’s interesting that these patterns have not changed in centuries. They are truly a reflection of crowd psychology. Many times you will see the structures of the patterns form with exact Fibonacci ratios. Adding the...