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Head_and_shoulder

📚Learn More💰Earn More - Inverted Head and Shoulders in USDJPY📚 LEARN MORE 💰 EARN MORE With ForecastCity 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. Neckline resistance does not need to be strictly horizontal. This illustrates that the downward trend is coming to an end . When a Head and Shoulders formation is seen in a downtrend, it signifies a major reversal . The pattern is confirmed once the price breaches the neckline resistance . In this example, we can easily see the head and shoulders pattern. How to Trade the Head and Shoulders Pattern : ENTRY: we put an entry order above the neckline. TARGET: We can also calculate a target by measuring the lowest point of the head to the neckline. This distance is approximately how far the price will move after it breaks the neckline. ❤️ If you find this helpful and want more FREE forecasts in TradingView . . . . . Please show your support back, . . . . . . . . Hit the 👍 LIKE button, . . . . . . . . . . Drop some feedback below in the comment! ❤️ Your Support is very much 🙏 appreciated! ❤️ 💎 Want us to help you become a better Forex trader ? Now, It's your turn ! Be sure to leave a comment let us know how you see this opportunity and forecast. Trade well, ❤️ ForecastCity English Support Team ❤️
Education
by ForecastCity
NZDUSD Daily & H4 Comparison Analiysis for next weekA 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 less then 1:2 Trade Execution can be expected anywhere between Tuesday - Wednesday. So keep watching this one and put it on your To-Do List
Education
by Manjinder_Singh_Sasan
2
Head and Shoulders - "Learn More Earn More" with usHead 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. . This illustrates that the upward trend is coming to an end. . When a Head and Shoulders formation is seen in an uptrend , it signifies a major reversal . . The pattern is confirmed once the price breaches the neckline support In this example, we can easily see the head and shoulders pattern. How to Trade the Head and Shoulders Pattern: ENTRY: we put an entry order below the neckline. TARGET: We can also calculate a target by measuring the high point of the head to the neckline. This distance is approximately how far the price will move after it breaks the neckline.
Education
by ForecastCity
11
Head and Shoulders - "Learn More Earn More" with us 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. . This illustrates that the upward trend is coming to an end. . When a Head and Shoulders formation is seen in an uptrend , it signifies a major reversal . . The pattern is confirmed once the price breaches the neckline support In this example, we can easily see the head and shoulders pattern. How to Trade the Head and Shoulders Pattern: ENTRY: we put an entry order below the neckline. TARGET: We can also calculate a target by measuring the high point of the head to the neckline. This distance is approximately how far the price will move after it breaks the neckline.
Education
by ForecastCity
12
Inverse Head and Shoulder Pattern using BTCUSDThe 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 & Shoulder: An inverse head & shoulder pattern is comprised of three main components: -After a long bearish trend, the price falls to a trough and subsequently rises to a peak -The price again falls to form a second trough substantially below the initial low and rises again to the same peak -The price falls for the third time but to the level of the first trough only before rising back to the same peak again In this chart pattern there are three trough in which a large trough (the head i.e. the second trough) has a slightly smaller trough on either side of it (right and left shoulder that are the first and third peak), with all of the trough increasing to a same level of resistance i.e. the peak until where all the troughs had risen, called as neckline in the pattern. Once the third trough (right shoulder) moves back to neckline it is likely to breakout to a bullish uptrend indicating a trend reversal hereby, which is the basic explanation of Head and Shoulder. Traders can use Inverse head and shoulder to buy when the breakout is observed i.e. at the neckline after the right shoulder reached there completing the Inverse Head & Shoulder formation. For confirmation traders can use the drop in volume as the Inverse Head & Shoulder is forming and a sudden increase in the volume as breakout is observed suggesting a shift from sellers before the pattern to buyers after the pattern. There are few limitations as well to the Head & Shoulder Pattern: -Sometimes false breakouts might be observed -The time duration for formation of the pattern might be too long -Trough or peak might be pretty far from the neckline resulting in large stop loss distances which might have o reviewed consistently -The price may see pullback after the third peak or trough often confusing few traders ---------------------------------------------------------------------------------------- If you find the post useful, please like and share our ideas with the community! - Mudrex
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COINBASE:BTCUSDEducation
by Mudrex
12
Trading The Head And Shoulders Chart Pattern 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 basic diagram of a head and shoulders pattern: A head and shoulders pattern (hereafter “H&S”) is a bearish reversal chart pattern that often marks the top of an uptrend and predicts a selloff in a particular index, stock, or ETF. The left shoulder and head are formed as the stock is rallying and does not indicate anything bearish. However, once the neckline is formed on the right side of the head, that is our first warning point that the buying momentum has slowed because, rather than setting a higher low on the previous rally, the stock sells off all the way down to the prior low. When this occurs, people who bought near the top (the head) are now trapped in the long position. Then, as another wave of buyers attempt to rally the stock, the people who are trapped long at the top sell into the rally in an attempt to just come close to breaking even. This weakens the stock even more, which prevents the achievement of a higher high and also forms the right shoulder. This usually marks a break of the uptrend as the stock comes back down once again and tests the prior low. At this point, everyone who bought on the left shoulder, head, and right shoulder are now trapped and out of the money in their positions. So guess what happens? They begin to sell, which causes a break of the neckline, which subsequently causes a rapid and often volatile collapse of the price due to selling momentum. When is the right time to short sell this pattern? Although the most ideal entry point for short selling a H&S pattern can be debated, we prefer to enter after the right shoulder has been formed and starts back down to the neckline. If you enter before the right shoulder is formed, there is not enough confirmation that there really is a H&S pattern being formed, so you will often stop yourself out by short selling too soon. On the other hand, if you wait for the neckline to break before selling short, your entry price is not that great and can often result in getting shaken out of the position right before it cracks, or missing the selloff altogether. However, by selling short after the right shoulder has been formed and the price starts coming back down, you are essentially selling into strength, which gives you a lower risk and higher profit entry point. If the H&S fails and does not follow through, your losses are also reduced because you shorted at a decent price. Remember that the goal of the best stock trading strategies are not to squeeze every single dollar of profit out of a trade, but rather to catch a “meat of the move” with minimal risk. When a H&S drops below the neckline (which is sometimes ascending or descending), the predicted selloff amount is usually equal to the distance from the top of the head down to the neckline. So, if the price at the top of the head is $100 and the price at the neckline is $90, the predicted drop would be equal to $10 (100 – 90) below the neckline. Since the neckline is $90, the predicted selloff is down to $80. This is a guideline you can use to determine a target price for where to take trading profits on this short setup. Failed head and shoulders patterns Although H&S patterns follow-through frequently, there are occasions when the chart pattern fails, meaning that it never drops below the neckline after forming the right shoulder. A failed H&S pattern occurs when the price rallies above the high of the head after forming the right shoulder. When the price rallies above the head, make sure you quickly cut your losses if you are short because the move is usually strong if there were enough buyers to propel through all that resistance and set a new high. After getting through the resistance of the H&S pattern, the failed short setup often becomes a great long play. Here is an example of a failed H&S: Using volume as a confirming indicator One indicator you can use to assist in determining the probability of whether or not the H&S will follow-through is volume. As with every other type of chart pattern, volume is the most critical type of technical analysis, and this pattern is no different. Specifically, what we look for is lighter volume on the right shoulder than on the left shoulder. If volume on the formation of the right shoulder is significantly less than the volume that formed the left shoulder, it indicates there are less buyers to rally the stock, which increases the probability of coming back down to test the neckline and eventually breaking below it. Conversely, increasing volume on the right shoulder is often a warning sign that the pattern may not follow-through and we will need to cover our shorts if the right shoulder ends up breaking above the head. What is the time frame of this technical pattern? It is important to realize that the amount of time it takes a stock or ETF to complete the breakdown of the H&S pattern is largely dependent on the time frame of which the setup occurs. For example, a H&S pattern that sets up on a 5-minute intraday chart will usually follow through and complete the selloff within a few hours. However, if you see a H&S on a sixty-minute chart, it will probably take several days or even a week to complete the predicted drop. A H&S on a daily chart will usually take weeks or even months to follow-through. Therefore, if you see a H&S pattern on a daily chart, it’s typically not as easy as blindly going short unless you are the type of trader who can stomach volatility. If you sell short a H&S on a daily chart, you will probably stop yourself out unless you allow the setup a significant amount of time and price volatility before it follows-through. Because of this, we prefer to trade H&S patterns that occur on shorter time frames such as 15 or 60 minute charts. These make for ideal swing trades on the short side, and are often the source of short setups for the detailed short-term ETF and stock picks in our trading newsletter.
BITFINEX:BTCUSDEducation
by IgorPorokh
2
GBPAUD potential Head and shoulder pattern 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 is formed by a peak (shoulder), followed by a higher peak (head), and then another lower peak (shoulder). 3. The neckline is drawn by connecting the lowest of the two troughs Entering: when the price break the neckline Stop loss: above the right shoulder Target: calculate a target by measuring the high point of the head to the neckline.This distance is approximately how far the price will move after it breaks the neckline. Don't Forget to follow and Like if this article have any value for you. Good Luck
Education
by IhabMax
Fundamentals of the Head and Shoulder BottomMany 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, sometimes become too stuck on one pattern and its outcome, and to not fully recognize the fact that it can fail. Leading to why I decided to make this educational post, whether this pattern completes itself or not, it is here to show you what trading is actually like. The chart above displays a textbook Head and Shoulders Bottom (also called Inverse Head and Shoulders) pattern forming. However, this pattern has yet to fully complete itself, and even if it does, it may or may not hit our preferred target. But lets break down the fundamentals of a Head and Shoulders Bottom. Prior Trend : The reason it is called a head and shoulders bottom pattern, is because it occurs after a previous downtrend. So we first must check that the trend is down before considering this pattern. The Body : The reason it is called a head and shoulders pattern is due to its shape. The head is ALWAYS the lowest point in this pattern, while the left and right shoulders sit at similar levels above the head. All three of these points then share the same resistance level know as the neckline. Neckline : The neckline forms by connecting the highs following the left shoulder and the head of the pattern. This line can slope up, slope down, or be horizontal. This is the key level to break in this pattern. Right Shoulder : There seems to lots of controversy with the right shoulder, some believe that this level must at the exact same or higher level than the left shoulder. However this is not the case. While symmetry is preferred, sometimes the shoulders can be out of whack, and the right shoulder will be higher, lower, wider, or narrower. Volume : Since this pattern forms on the bottom of bear trends, there should be heavy selling volume on the left and right shoulders, while the right shoulder should be accompanied by light selling pressure. The most important moment for volume occurs on the advance from the low of the right shoulder. For a breakout to be considered valid, there needs to be an expansion of volume on the advance and during the breakout. Neckline Break : In order for this pattern to complete itself. There MUST be a break above the neckline . Otherwise the neckline remains resistance the the trend continues downwards. Confirmation : Some believe the the neckline break serves as confirmation. However the real confirmation is once the neckline which once acted as resistance, later acts as support. Target : The preferred target may be measured by taking the distance from the bottom of the head up to the neckline. While this is just a preferred target, one must consider other possible resistance levels. Remember, even with all the patterns out there, there is never a 100% guarantee in trading. I wish you all the best of luck! I Hope you all found this educational post intresting and maybe even a little helpful! DISCLAIMER: Please note I am only providing my own trading information for your benefit and insight to my trading techniques, you should do your own due diligence and not take this information as a trade signal.
BITFINEX:BTCUSDEducation
by oh92
9
The Game of Charts- Strong Resistance at $6800BITFINEX: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 . Thank you . Legal Disclaimer: This is purely a technical analysis and it is to be used for educational, entertainment purposes only. This is not a financial advise to buy or sell Bitcoin and I am not a financial advisor. Do your own research before investing.
BITFINEX:BTCUSDEducation
by AbyZee