Classical SHS
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), thats where a SHS is very close
now draw the neckline, (connect the beginning of the left shoulder with the low after left shoulder, and low after the head)
If the price breaks this neckline, the SHS is completed, and it is very likely that the price will fall the same amount, it went up from the left shoulder to the head.
All clear?
Any questions?
Let me know!
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), thats where a SHS is very close
now draw the neckline, (connect the beginning of the left shoulder with the low after left shoulder, and low after the head)
If the price breaks this neckline, the SHS is completed, and it is very likely that the price will fall the same amount, it went up from the left shoulder to the head.
All clear?
Any questions?
Let me know!
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