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Head_and_shoulder

Seizing Bearish Momentum: Nasdaq 4H Setup with Gartley Pattern📉Attention traders! After successfully bagging a 1:8 risk reward ratio on the recent rally on S&P 500. There is an exciting Nasdaq setup on the 4-hour timeframe that demands your attention. Here's the breakdown: 📌 Technical Analysis Highlights 📌 🐻 Bearish Gartley Pattern: The Nasdaq chart reveals a bearish Gartley pattern, hinting at a potential trend reversal. 🕯️ Bearish Engulfing Candlestick: Point D of the pattern confirms the reversal, marked by a formidable bearish engulfing candlestick. This indicates that sellers have taken the reins, overpowering buyer sentiment. 📈 Momentum Shift: The price is currently gaining momentum, positioned just below the moving averages, and a crossover seems imminent. This adds weight to the bearish scenario. 📉 Trade Strategy 📉 With these compelling technical signals, it's time to consider a short position on the Nasdaq. Initiate your short trade around 15,420 with a strategically placed stop loss above the recent high, approximately at 15,540, to manage risk effectively. 🎯 Take Profit Targets 🎯 1️⃣ First Target: 15,230 2️⃣ Second Target: 15,000 3️⃣ Ultimate Target: 14,700 Remember, trading carries inherent risks, and prudent risk management is paramount. Perform thorough research and stay updated on market conditions. Best of luck with your trades, and may they yield substantial profits! 💰📉📈 Feel free to share your toughts in the comments section, follow me for updates and don't forget to press the like button if this insight was helpful 🌊🚀
OANDA:NAS100USDShort
by Thomas_Zito
11
USOIL H&S: Optimal opportunity with high Risk-Reward 📉Attention traders! We've uncovered a promising setup on the 1-hour timeframe for USOIL that you need to consider: 📌 Technical Analysis Highlights 📌 🧠 Head and Shoulders Formation: The price action has revealed a classic head and shoulders pattern, a well-known indicator of an impending trend reversal. 📉 Near Neckline Entry: We're currently positioned close to the neckline, which presents the optimal entry opportunity for a short position. This entry point allows for a tight stop loss and a potentially lucrative risk-to-reward ratio. 📈 Trade Strategy 📈 Given the strong technical signals, it's time to enter a short position on USOIL. This strategic setup could prove highly profitable. 💼 Risk Management: Employ a tight stop loss to manage risk effectively and take advantage of the favorable risk-to-reward ratio. Feel free to share your toughts in the comments section, follow me for updates and don't forget to press the like button if this insight was helpful 🌊🚀
TVC:USOILShort
by Thomas_Zito
NQ - Potential Head & Shoulders (Risk off for now)The picture isn't pretty for Bulls at the moment. With a potential Head and Shoulders formation in the making, the likelihood that both the Nasdaq100 and SPX will be testing their neckline "supports" in the near future appears strong. September is historically a "weak" month and this year it appears to be no different. Whether this is just a much need correction for the last quarter boost or something more ominous remains to be seen. Be wary of buying stocks on the cheap unless it is backed by supports that are holding with bullish reversal signals. I will err on longer term bearishness should Nasdaq 100 start to break and stay below it's neckline support of 14687. Let's see! Disclaimer: TA is about improving our odds of a successful trade (not a guarantee). This is just my own analysis and opinion for discussion and is NOT a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management (ie trailing stop loss and position sizing) is (probably the most) important! Take care and Good Luck!
NASDAQ:NDX
by Juliac
XAU/USD 20.09.2023 shortFOREXCOM:XAUUSD Hello traders, For today, I'm expecting a move up to around 1943 during the London session. However, over the New York session, I anticipate a drop down to 1928, possibly even 1924. My entry point would be at 1934, which is a resistance area that aligns with the 68% Fibonacci level. Additionally, this setup could form a nice head and shoulders pattern, providing further confluence. Considering the strong bullish sentiment of the Dollar at the moment, I would not recommend a long position in gold. As always, it's crucial to stay informed about news events, as they can quickly impact market dynamics and lead to new highs or lows. Keep a close watch on both technical and fundamental factors for informed trading decisions.
FOREXCOM:XAUUSDShort
by NeptenFX
Head and Shoulders AMZN LONG $$$AMZN has recently demonstrated an uptrend until a sudden momentum change on 9/19. The current resistance level (neckline) is set at $145.05. With the beginning downtrend, the stock sets up a short position from the neckline to roughly $102. Following a reversal from support of the previous shoulder, a long position forms and AMZN exits the pattern. MacD and SQZMOM are indicative of a trend reversal while RSI is indicative of an overbought condition. In the broader market context, many major stocks have recently experienced significant corrections, followed by impressive rebounds, eventually reaching new 52-week highs. This pattern may serve as a template for what could happen with AMZN after this inverted head and shoulders formation. Possible Long positions and Short positions look like this: Remember to put your stop losses after the last low!
NASDAQ:AMZN
by WillyVanilly
"S&P Inverted Head and Shoulders: Targeting 4500 📈🚀Traders, fasten your seatbelts! I've identified a compelling setup on the 30-minute timeframe for the S&P that's too good to miss: 📌 Technical Analysis Highlights 📌 🧠 Inverted Head and Shoulders: The price action has gracefully formed an inverted head and shoulders pattern, a classic reversal formation. This suggests a strong likelihood of an upward retracement as this pattern is highly reliable. 🚀 Upside Potential: The presence of this pattern indicates the high potential for a bullish move. As we dive into this trade, my initial take profit target is set at 4480, with an ultimate goal of reaching 4500. 📈 Trade Strategy 📈 With these compelling technical signals, the strategy is clear: seize this buying opportunity on the S&P. 🎯 Take Profit Targets 🎯 1️⃣ First Target: 4480 2️⃣ Ultimate Target: 4500 Remember, trading carries inherent risks, and it's essential to perform your own due diligence and employ risk management techniques. Best of luck with your trades, and may they bring you substantial profits! 💰📈🚀 Feel free to share your toughts in the comments section, follow me for updates and don't forget to press the like button if this insight was helpful 🌊🚀
OANDA:SPX500USDLong
by Thomas_Zito
2
GOLD: If it fails, the bearish trend will return.We already shared our view on daily chart last week (see analysis below), so today we will look for some potential Patterns on intraday chart. Having said that, if we look at the 1H chart, we cannot exclude the formation of Inverted Head and Shoulders, if this fails, the Price Action should trigger a new Low and a return to the bearish trend also on daily chart. Today, we will only think about managing our long position taken last week and we will think about adding position only after some confirmations which we are currently missing. With this in mind, the signal will be confirmed with neckline breakout. DAILY ANALYSIS (Click on Chart below) Trade with care Like | Share | Comment
OANDA:XAUUSDLong
by TheAnonymousBanker
7
🔥 Bitcoin Head & Shoulders Forming? Patience For BearsAfter bouncing off the bottom support, Bitcoin seems to have regained short-term bullish momentum. In this analysis I want to discuss the potential H&S pattern that BTC is forming in the near term. My longer-term view is still bearish, but that doesn't mean we can't get a bounce here and there. In my eyes, there is a potential for BTC to move further up. The odds are against the bulls at this point, but there's still a chance that this pattern will play out. The 30k-31k area is going to be key. Not only because of the number, but also because it's the April'23 high. Would be a perfect bearish entry. Do you think this pattern will play out? Share your thoughts in the comments 🙏
COINBASE:BTCUSDLong
by FieryTrading
14
How to trade head and shoulder pattern? 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. In this comprehensive guide, we'll delve deep into the Head and Shoulders pattern, breaking down its components, identifying its variations, and learning how to trade it effectively. Understanding the Head and Shoulders Pattern The Head and Shoulders pattern is a classic reversal pattern that forms after an extended uptrend, signaling a potential change in market direction from bullish to bearish. It consists of three peaks, with the middle peak (the "head") being higher than the other two peaks (the "shoulders"). The pattern typically unfolds as follows: 1. The Left Shoulder - The left shoulder represents the first peak after a strong uptrend. - This peak is typically followed by a minor retracement, creating the first trough. 2. The Head - The head forms after a brief rally from the left shoulder's low point. - It represents the highest peak in the pattern and usually exceeds the previous peak. - After reaching this peak, the price retraces again, forming the second trough. 3. The Right Shoulder - The right shoulder is the third and final peak in the pattern. - Like the left shoulder, it is lower than the head and forms after a minor rally. - The right shoulder's high is followed by a retracement, creating the third trough. Key Characteristics of the Head and Shoulders Pattern To effectively identify and trade the Head and Shoulders pattern, it's crucial to understand its key characteristics: 1. Symmetry - The left and right shoulders should be roughly symmetrical in terms of height and width. - The head should be the highest point in the pattern. 2. Volume - Volume plays a vital role in confirming the pattern. - Volume should generally decline as the pattern forms and then increase as the price breaks below the neckline (more on this later). 3. Neckline - The neckline is a trendline drawn horizontally connecting the low points of the left and right troughs (the shoulders). - The neckline serves as a critical level of support. A breach of this level confirms the pattern. Trading the Head and Shoulders Pattern Trading the Head and Shoulders pattern involves two main steps: identification and execution. Identification: 1. potting the Pattern: Begin by identifying a well-defined Head and Shoulders pattern on your forex chart. 2. Volume Confirmation: Ensure that volume decreases as the pattern forms and increases upon breaking the neckline. 3. Neckline: Draw a neckline connecting the lows of the left and right shoulders. Execution: 1. Entry Point: Place a short trade when the price breaks below the neckline. This serves as a signal that the pattern has confirmed. 2. Stop-Loss and Take-Profit: Set a stop-loss order above the right shoulder and a take-profit order based on your risk-reward ratio. 3. Risk Management: Be mindful of risk management, and never risk more than you can afford to lose on a single trade. Variations of the Head and Shoulders Pattern While the classic Head and Shoulders pattern is powerful, variations can offer additional insights: Inverse Head and Shoulders: - An inverse Head and Shoulders pattern signals a potential bullish reversal. - It comprises three troughs with the head being lower than the shoulders. - The pattern is confirmed when the price breaks above the neckline. Complex Head and Shoulders: - Complex variations may have multiple heads or shoulders, making them harder to spot. - Despite their complexity, they follow the same principles of confirmation through neckline breaches. Conclusion The Head and Shoulders pattern is a valuable tool in the forex trader's toolkit. By mastering its identification and execution, you can gain a competitive edge in the market. Remember that no pattern is foolproof, and risk management remains paramount in forex trading. As with any technical analysis tool, it's essential to combine the Head and Shoulders pattern with other indicators and analysis methods for a well-rounded trading strategy. So, start practicing, keep refining your skills, and always stay informed about the latest market developments to become a successful forex trader.
Education
by forexorbit
BTC: QUICK UPDATE!!Hello everyone, if you like the idea, do not forget to support it with a like and follow. Welcome to this quick BTC update. BTC breaks down from the head and shoulder pattern in a 30-minute time frame and looks bearish here. We might see a small dump up to the $25.2k level from here followed by a quick pump. So basically I'm expecting a quick dump today or on Monday up to the $25.2k level and then we see a pump up to the FWB:27K level. Let's see how this plays out. Invalidation:- Hourly close above the $26.2k level. What do you think about this? Share your views in the comment section. If you like this idea then do support it with like and follow. Thank You!
Short
by CoreCrypto1
8
All time hight • Value in the chart is similar to Mount Everest in series. • Left shoulder start building from July 2021 to September 2021. • Left shoulder High 2300-2370 life time. • Header and shoulder pattern breakout in the dalmiabharth chart. This level, which peaked in July 2021 and acts as resistance, descends to the 1840 level (50 SMA Weakly chart). Right shoulder encounters resistance between 2280 and 2300, with a downward (100sma) support level of 1860–1870. Header formation from 2300 level to 1200–1220 (200sma) level was accomplished over a two-year period. Today's stock closed above this level, confirming that the stock has broken out at the 2290-2300 level and that it has sustained all-time high levels. • This pattern's target is 3300, with a stop loss of 2190 points below this level as the baseline. No recommendation for buy and sell Take your own analysis
NSE:DALBHARATLong
by investigationofchart
Is There More Downside to GBPUSD?The FX:GBPUSD chart has been shaping the right shoulder of the head and shoulders pattern, a common indicator of bearish sentiment. The chart displays the classic head and shoulders pattern, which often suggests a bearish trend. We have already seen the formation of the left shoulder and head, with the right shoulder in the making. This recent price action suggests a persistent downward trend, aligning with the ongoing bearish sentiment. Key Levels to Watch: The critical juncture for potential reversal is around the 1.23700 price level. Until then, it is reasonable to anticipate further downside in the GBPUSD pair. Disclaimer: This analysis is solely an opinion and should not be considered as financial advice. Trading involves risks, and decisions should be made based on thorough research and your personal risk tolerance.
Short
by scipheord
Analysis of BANKNIFTY index on Daily chart (1D)Looks beautiful on the daily chart... I'm happy to see the breakout candle of the H&S pattern trendline (pink line)... Now, we can see the higher resistance shifted to 45300 / 45900 and support is shifted to 44500 / 44100 It's just a view of what I observed on the chart. I'm sharing my observation on this platform purely for education purposes and It's not a trading idea. I'm not a SEBI registered technical analyst, so consult your financial advisor before trade and trade based on your own knowledge and risk management...
NSE:BANKNIFTY
by jaydeep984trivedi
🔥 XMR Bullish Head & Shoulders: Watch This Pattern! 🚨XMR appears to have formed a clear inverse head & shoulders pattern, which is the direct opposite of a normal H&S pattern. Classically, this pattern appears at important areas of trend-reversal. I'm going to wait for the neckline to break. Once the price has closed above the neckline, it will be my entry signal. Stop below the right shoulder, target at the 2023 highs. Note: I'm not counting the August 17th wick because it was a stop-loss cascade wick.
XLong
by FieryTrading
10
SP500 / US500Did we get a right shoulder invalidation of the possible SP500 head and shoulders patterns? It is quite early to suggest that. We need the right shoulder to prove itself and work as support to give me more conviction. As long as we stay on top of the right shoulder ~4470 I am carefully bull. If we fall back under it I'm waiting for a test of the neckline ~4340. In this situation price probably would break it and tests the big support 4195 area. As long as we stay on top of the ~4180 I am long term bull If you trade use stop losses! 1st mistake novice traders do is that they don't use them and gets their ass burned! -PalenTrade
CAPITALCOM:US500
by PalenTrade
5