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Headandshouldersformation

NZDCAD - Head and Shoulders Pattern There is a nice Head and Shoulders Pattern setting up here on NZDCAD. There would be a nice location for stops right above the left shoulder and on the right shoulder retest we have a Double Top setting up as well with Bearish Divergence. If you want to wait for a confirmation you can wait for the neckline to break and then get involved on a retest and pullback. Depending on how aggressive you are with targets you can get a very good risk reward on this one with either a retest of the neck level or shooting lower. If you are looking for targets at the lower level of structure we have a 1.618 Fibonacci extension from the Head to the Neck which gives us confluence at this target location. -Raymond Jeffries
Short
by Raymond_Jeffries
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
How to deal with Head and Shoulders patternThe head and shoulders pattern is one of the most reliable chart models so it is very important to identify it in order to execute a profitable trade with the least possible exposure to risk. The basic concept of such a model is the formation of a final maximum ( head ) separated by two more contained raises (shoulders ) that can also be not identical for entity of change price. The formation of such figure can be both of change trend and continuation/strengthening of the primary trend. In the stock market becomes more easily identifiable because of increase or decrease of volumes at key points; maximum volumes in the construction of the left shoulder and head, lower volumes in the construction of the right shoulder. It is more difficult to frame a head and shoulders in the forex market by analyzing the volumes as they may not be the real volumes of the trades. The line that supports the structure is called neckline. The strength of a head and shoulders also depends on the timeframe (daily, weekly, monthly) with which you look at the chart, in fact, the higher the timeframe more time will take for the formation but will be more strong the final movement. Example 1 ----> imgur.com Example 2 ----> imgur.com The formation of the pattern that we see in the figure in the link , as mentioned above , could also be slightly inclined, often depends on the primary trend for which to have an inaccurate neckline. It ' s also possible a head and shoulders inverted pattern as you see in the figure which to the contrary of the first one presages a possible break to the rise of the prices and therefore a change trend from short to long. Thanks for support , if you like the post push the like button and tell me what you think about it or if it was useful to you. The post explains my operation in the presence of a head and shoulders to take the least risk.
Education
by AidiDuhanxhiu
1
Possible Head and Shoulder reversal @ 1H chartOn the down trend, there is a nice bullish head and shoulder forming with a possible long entry up to the resistance @ 1D. We see the left shoulder and the head that formed nicely and the right should formation looks like it is supporting at the left should for a possible long entry. I already entered the trade per my strategy which led me to enter a little earlier at the right shoulder formation. You could wait a little longer for confirmation since the right shoulder hasn't finished forming yet.
NYSE:NILong
by gsotolongo
1
Head and Shoulders the accurate price action patternHead and Shoulders Pattern Tutorial - Head & Shoulders chart pattern is a price reversal pattern that helps traders identify when a reversal may be underway; this reversal signals the end of an uptrend. The formation of a H&S pattern resembles a baseline or neckline with three peaks where the middle peak is the highest between the two right and left peaks. Head and Shoulders patterns are statistically the most accurate chart pattern, almost 85% of the time they reach their projected target. The formation of a H&S pattern resembles a baseline with three peaks where the middle peak is the highest. The two left and right peak don't have to be at the same price, but the more closer they are to the same level the more stronger the pattern becomes. The pattern completes when price breaks through the neckline. Stay Tuned, 👍;
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by tapasdhanadana