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Head and Shoulders

USD/CAD trend suggests higher pricesUSDCAD is forming a mini inverse head and shoulders pattern that has developed over the last three days. A break above 135.80 could push the price up to 136.02. The short-term trend remains bullish as long as the price stays above 135.45. This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Long
by ThinkMarkets
USD/JPY inverse H&S pattern suggest 200 pips upsideThe USD/JPY pair has been forming an inverse head and shoulders pattern over the past five days. This bullish reversal pattern suggests a potential shift in the trend. The difference between the head and the neckline is approximately 208 pips. A break above 143.77, which is just above the high from Monday, September 9th, could trigger this pattern. If confirmed, it could push the price up to around 145.88, as the height of the pattern suggests this potential target. This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
by ThinkMarkets
All About the Head & Shoulders Pattern(Beginner-Friendly) Part.2Hello, everyone. Today, I’m excited to share the second part of my educational series on chart patterns. In this post, we’ll be focusing on the 'Head and Shoulders' and 'Inverse Head and Shoulders' patterns. For those who missed the first part, you can catch up here: ↓↓↓ As always, I’ve kept the explanations simple and beginner-friendly. I hope this guide provides you with valuable insights! Here’s today’s outline: ———— ✔️ Outline 1. What is the Head and Shoulders pattern? Definition Key components Characteristics 2. Head and Shoulders Basic features Examples 3. Inverse Head and Shoulders Basic features Examples ———— 1. What is the "Head and Shoulders" pattern? 1) Definition The Head and Shoulders pattern is a well-established reversal formation that appears after an uptrend and signals the potential start of a downtrend. It indicates that buying pressure is weakening and selling pressure is gaining momentum. 2) Key components Left Shoulder: The initial peak, where the price rises and then pulls back. Head : The highest peak, situated between the two shoulders, representing the final bullish push. Right Shoulder: The third peak, which is typically lower than the head but similar to the left shoulder, signaling diminishing buying interest. Neckline: A key support line drawn across the lows of the left and right shoulders. A decisive break below this neckline confirms the reversal and the beginning of a downtrend. 3) Characteristics Reversal signal: The Head and Shoulders pattern marks a transition from an uptrend to a downtrend. Easy identification: The structure is visually distinctive, with three clear peaks. Neckline significance: A break below the neckline serves as a confirmation signal for the downtrend. Volume dynamics: Volume typically rises during the formation of the left shoulder and head, decreases during the right shoulder, and surges again when the neckline is breached. ———— 2. Head and Shoulders (Reversal from uptrend to downtrend) 1) Basic features End of an uptrend: The Head and Shoulders pattern forms at the end of a bullish phase, signaling a weakening in buying strength. Distinct peak heights: The head is always higher than the shoulders, which are generally symmetrical, though the right shoulder may sometimes be slightly lower, enhancing the pattern’s reliability. Neckline as a trigger: The neckline acts as a critical support level. A break below it confirms the pattern and signals the onset of a bearish trend. Volume confirmation: Volume increases during the left shoulder and head formations, weakens during the right shoulder, and spikes when the neckline is broken, confirming a potential sell-off. Price target: After the pattern completes, the expected price drop is typically equal to the distance between the head and the neckline, providing traders with a target. 2-1) Example 1 In this example, we see a fakeout at the right shoulder, followed by a sharp decline. After a brief retest of the neckline, the price broke through and continued its downtrend. 2-2) Example 2 In this chart, a fakeout occurred when the price dropped from the head and formed the neckline, misleading many market participants. After forming the right shoulder, the price successfully declined. There were two retests, which confirmed the reliability of the pattern. ———— 3. Reverse Head and Shoulders (Trend reversal from downtrend to uptrend) 1) Basic features End of a downtrend: The Inverse Head and Shoulders pattern typically forms at the end of a downtrend, signaling a potential reversal to the upside. Formation of lows: Like the standard Head and Shoulders, this pattern consists of three lows—left shoulder, head, and right shoulder—with the head being the lowest point. Neckline significance: The neckline is drawn across the highs of the left and right shoulders. A break above this line confirms the reversal and acts as a strong buy signal. Volume pattern: Volume tends to decrease during the formation of the pattern but surges when the neckline is broken, signaling strong buying momentum. Target setting: After the pattern is confirmed, the expected price rise is often equal to the distance from the head to the neckline, which helps traders set profit targets. 2-1) Example 1 After the Head and Shoulders pattern formed, the price broke above the neckline, successfully reversing the downtrend into an uptrend. A buy strategy would have yielded profits at the breakout point. 2-2) Example 2 In this example, a smaller Reverse Head and Shoulders pattern formed within the head of a larger pattern (see Example 3). After two successful retests, the price reversed into a strong uptrend. 2-3) Example 3 This example showcases the smaller Reverse Head and Shoulders pattern mentioned in Example 2, located within the head. After two successful retests, a buy strategy could have led to profits as the price reversed into an uptrend. ———— ✔️ Conclusion "Charts are the maps of the market." The Head and Shoulders and Reverse Head and Shoulders patterns we’ve covered in this post are key signals that frequently appear in the market. Charts aren’t random—they are visual representations of market psychology and investor behavior. As traders, our role is to interpret these maps, navigate the market, and make informed decisions. Investing is more than just buying and selling. Sometimes the market may move contrary to our expectations, while other times we seize opportunities and achieve success. Each experience is a chance to learn and grow. The more experience you gain, the more paths you’ll recognize on the chart. Success in this market requires persistence, patience, and continuous learning. Understanding and analyzing chart patterns like the ones discussed here is just the beginning. I hope this post has helped you gain a deeper understanding of the market and make more informed decisions. The market is always evolving, but within that evolution lies opportunity. The key is developing the ability to spot those opportunities. With knowledge, experience, and confidence, you’ll find greater success. Stay prepared, and always listen to what the market is telling you.
Education
by Killer_Whales
1
Alikze »» BTC | Ascending diamond pattern🔍 Technical analysis: Ascending diamond pattern - According to the latest analysis presented , Bitcoin made a correction based on the predicted path to the second green box area of ​​the $50,000 correction range. - In the recent modification, a double zigzag has been formed. The second zigzag is a flat correction. According to the formation of an ascending diamond pattern in the green box area, after the failure of the dynamic trigger, the diamond pattern will be confirmed and it can expect to climb up to the specified areas according to the previous analysis. 💎 Note: Also, if a failure occurs from the bottom of the template, this template is invalid and must be checked and updated again. »»»«««»»»«««»»»««« Please support this idea with a LIKE and COMMENT if you find it useful and Click "Follow" on our profile if you'd like these trade ideas delivered straight to your email in the future. Thanks for your continued support. Best Regards,❤️ Alikze. »»»«««»»»«««»»»««« BINANCE:BTCUSDT
Long
by alikze
2
Filecoin - Play the reversal Pattern. Start building longs. Filecoin may be forming a giant inverse head and shoulders/triple bottom. This is granted that we don't bust through the low 2.00ish area and get price discovery to the downside. I would be buying as low as the low 2.00 area, and as high as 5.00-6.40. Unfortunately, I don't think that this market cycle is going to be as strong as the others, so we may only see the measured move play out from the inverse head and shoulders. That would take us to key resistance at around $16.00. If we are very lucky, then we may get to attack the upper targets as we did last market cycle - that would be 36.00 as the next milestone after 16.00. Then 55-56.00, then 86-87.00, then 220-230.00 again if we get extremely lucky. The way that this market cycle is looking, I am personally not setting my expectations beyond 16.00 for Filecoin. I'd love for that to be proven wrong, trust me! As always, I appreciate the collaboration!
COINBASE:FILUSDLong
by LoneWolf1425
7
The retest phase (4 scenarios)Currently, bitcoin is recovering from the current declines. I think this will take place in one of three ways: 1. the price will hit the blue neckline of the head and shoulders formation and then buckle back down. 2. the price will break through the blue line and test the lower edge of the diamond by bouncing down from it. 3 Price will break through the lower edge of the diamond and bounce off the red 3-month resistance line (formed by the previous ATH). 4. the price will hit the upper edge of the diamond and bounce down from it. There is another ‘bonus’ option - maybe I'm wrong and the bulls are just gathering strength for a big rally for a new ATH but I'd put that rather between fairy tales. This is not financial advice.
BITSTAMP:BTCUSDShort
by stanosky
1
According To The "13 EMA" Zoom Is Down Trending Am trying to grow a garden But am not sure of selling vegetables To the local market is profitable. Maybe if I calculate my expenses well including taxes,then this will build my confidence to sell vegetables one day. This stock NASDAQ:ZM is down trending using the "13 EMA" system you can clearly see this. As it drops after a major rally. According to the Breaking News⚡ right Here on TradingView One of the officers of the company wants to resign or something like that. This is negative news which may cause this stock to plumet!! Down. 👉 Because it's in a down trend 👉 Because the Breaking News is negative 👉 Because it's after rally that's when you sell. You should get ready for a market crash ⬇️🧟 To learn more 🚀 Boost this content Thank you for reading. ⚠️ Warning: Trading is risky because of this you will lose money wether you like it or not please Learn risk management and profit taking strategies.
NASDAQ:ZMShort
by lubosi
How To Use "The 13 EMA" System The day is quietly passing by, As am about to write down this idea on this stock to trade.. The problem with trading is that It's very hard especially if you Don't have a system to use The system am using is called "The 13 EMA." It shows you the perfect time of entry In this case we are looking at CWBC 👉Because it's a good buy 👉Because it gapped up a week ago 👉Because support is in an uptrend according to "The 13 EMA" system Before you trade you need to have a trading system,after you master a trading system. Then you can place "Good" trade. If you want to learn more Rocket 🚀 Boost This Content. ⚠️Disclaimer: Trading is risky please learn risk management and profit taking strategies because you will lose money wether you like it or not.
NASDAQ:CWBCLong
by lubosi