Headnandshoulders
Head & Shoulders pattern: 10 year yield could drop to 2.87%The series of tops shaped notorious Head & Shoulders pattern
on 10-Year Treasury yield (TNX).
The tallest peak is the Head and Shoulders are on both sides.
The Neckline is the support that is built through valleys of the Head.
The price has breached the Neckline this summer triggering the pattern bullish scenario.
The target is calculated by subtracting the height of the Head (from top to Neckline) from
breakdown point on the Neckline. It is located around 2.87%.
Almost 1% down from the current level
Trading Lucrative-Heads 'N' Shoulders Patterns : Silver 1 HR
Heads 'N' Shoulders' Patterns can be very lucrative and a pattern to keep in mind every trading day. They work on all time-frames. Often I see market structure price reversals on the 1 minute timeframe all the way down to 10 seconds.
They will be easier to trade on the higher time frames as their price-action can be super-fast on these very low timeframes. Depending on how you apply risk to reward in your trading, they will be more lucrative on the higher timeframes and more reliable because more traders see them on these bigger timeframes right up to weekly and monthly charts.
Here is what you need to know:
* Take advantage of the tradingview 'All Charts' pattern recogniser. This is what most traders including professional-traders would be using because it eliminates subjectivity.
* Draw your neckline from the bottom of left-shoulder across and beyond where the right shoulder comes down (price will be below to the left of the right shoulder & your exact point for the left shoulder will be under & to the right of left shoulder)
* Most often price will in the first instance after the right shoulder is formed, break through the neckline and then retest above the neck line or below the neck line if its a bullish Inverse Head 'N' Shoulders pattern. Seeing this retest occur will give the setup more reliability.
(Note: Price does not always Retest especially if price is selling or buying from a strong resistance or support area, respectively)
* Your trigger to buy or sell is on the retest/retracement above or below neckline, look for an increase in volume and/or a strong reversal candle like a pin-bar or engulfer.
(Your reward is generally the same distance as the neckline below the head)
* I hope this helps in your own trading. Trading is risky. Please don't rely solely on my financial analysis or trade setups.)
Crazy Sell-off in the Palladium Price since 2022. Over 200%. BUY
Why I think our Buy-setup in Palladium today has no much upside.
We have a bullish Head 'n' Shoulders on the 4HR timeframe. Right now price is giving you an even cheaper entry point before this pops!
So, is there demand for Palladium across the world? Take a read of this article from cmegroup.com
Why palladium matters to the growth of the platinum market
By World Platinum Investment Council - WPIC®
16 Jan 2024
Executive summary
Platinum is a critical mineral for the energy transition, and hydrogen-related demand for platinum is forecast to grow substantially through the remainder of the decade and beyond. Platinum catalysts in the electrolysis and fuel cell markets are expected to account for up to 15% of total platinum demand by 2030, reaching as much as 35% of total annual platinum demand by 2040.
The principal use of palladium in 2024 is in fossil fuel and hybrid vehicles, so the health of the automotive industry and the pace of transition to electric vehicles are the key drivers on the demand side.
From what I read, with electric-cars increasing there is not as much demand for catalyic-converters that are derived from palladium. However, there are other uses for palladium than electric cars and supply chains are continually disrupted by wars such as Russia and Ukraine.
All I see is the huge sell-off. I also see a monthly oversold condition for Platinum .
Bullish H n S for Bitcoin. Already retested!. Could POP hard
I was watching this one yesterday for BTCUSD but there was an opposing bearish Head n shoulder's pattern and the Bitcoin price really softened.
Take a look.
Trade entry: Look for increased volume & a bullish candle on approach to neckline.
Good luck,
Chris
Oceania trading week about to commence NZ. USD, Gold, Bitcoin
*
The USD could see some weakness this week, probably not coming until mid-week price possibly propelled by double/bottom structures on mid-timeframes, however the Daily timeframe is indicative of some weakness with price below the moving averages. It's possible later in the trading week the USD could retreat to the 100.60 - 100.85 zone where there is support. Let's see how that play out.
The whole idea is a bit counter-indicative of a short I am expecting on EUR/USD which is very overbought at the moment.
* In other developments, Bitcoin BTCUSD showed some strength during Sunday's session but is since off its' highs in the weekend session. However, BTCUSD is getting support on the 200 EMA on the Daily. I would not be surprised to see some bullishness in Cryptocurrency this week, with the shine perhaps coming off Gold which is overextended and overbought across all timeframes. The Silver price has further to run but will generally follow Gold's lead.
* In precious metals, as I point out above I see a short in XAUUSD very soon probably today, there is more buying demand on the higher timeframe for Platinum XPTUSD, XAGJPY, XAGUSD, XAUJPY whereas XAUGBP, XAUAUD & XAUUSD look over-bought. As I point out above, it's always tricky because I find they all mostly track the gold-price.
Have a good trading week, Oceania trading in NZ commences in 30 minutes (6pm New York time) and the Australian ASX kicks off in just over 2 hours time.
Chris
A risky yet legitimate Head 'N' Shoulders pattern on 4HR FTMUSA
So long as the BTCUSD price holds up during weekend trading this might pop to the upside soon, let's see how it plays out or if I get hammered down. There are opposing sell Head 'N' Shoulders setups on this same trade which complicates things a bit.
ELROND current 1HR timeframe Bullish Head n Shoulders
On the 1HR chart for Elrond, which I must point out is currently very thin volume, but I think this volume will pick up soon, you can see here on the 1HR that the H & S bullish pattern on 1HR price appears to be retracing & retesting the H & S setup zone near neckline.
Possible Trade Idea: Scale in with some Buy small orders just in case it winds back to $25 when I believe it will start to really move up again. But this H & S pattern on the 1HR may be the momentum upwards it needs.
Inverted Head and Shoulders Pattern for BTC/USD, Anyone?BTC/USD bulls have been making a comeback since forming a low of $56,478 and recently completed an inverted head and shoulders pattern (left shoulder: $59,559; head: $56,478; right shoulder: $60,165). Yesterday’s rally ventured through the pattern’s neckline, a descending line extended from the high of $67,273.
What is interesting from a technical standpoint is that the pattern’s profit objective – taken from the value between the head and the neckline and extended from the breakout point – merges with the all-time high of $73,845 at $73,756.
EOSUSDTHi guys
In my opinion, the rising guard of the chart is quite evident.
The condition of the above scenario for us is to maintain the support range of $0.6. Be sure to note that the reviewed process is long-term.
On the 4-hour time frame, we have a head and shoulder pattern at the end of the downward trend. Would you like to check on your chart (;
what do you think!?
Snowman Logistics Breaking Out from H&SIn the above weekly chart of Snowman Logistics NSE:SNOWMAN , we can see H&S (Head and Shoulders) pattern formation over a period of nearly 7 years and now it has broken out from the pattern. Re-test of the neckline also seem to have been done in last few weeks and neckline provided good support.
If we measure the height of pattern, it points to 112 levels which also happen to be very near to next major resistance of 114. It’s currently trading around 80 so this breakout might offer a potential upside of 60% in next few months.
On the flip side, if the stock goes back below neckline and sustains there for couple of days then this view is invalidated.
BTCUSDT📌 To complete the upward trend, it is necessary to see the $33,000 area again.
🔍 If we look carefully, we probably have a head and shoulders pattern.
▪️ The areas that we have identified are strong for supply and from here the possibility that a higher ceiling will be set for us is very, very weak
What do you think?
How to Head and ShouldersGreetings, Financial Enthusiasts! 🌟 If you appreciate our charts, give us a quick 💜💜
The Head and Shoulders pattern is a well-known chart formation in technical analysis. It indicates a reversal from a bullish to a bearish trend, usually at the end of an upward trend.
Key Points:
- Head and Shoulders: Chart pattern signaling trend reversal.
- Formation: Three peaks on a baseline - two lower outer peaks and a higher middle peak.
- Bullish to Bearish: Suggests a shift from an upward trend to a downward one.
- Applicability: Seen on all timeframes, suitable for various traders and investors.
- Entry Levels: Easily identifiable, aiding in trade implementation.
Why It Matters:
The Head and Shoulders pattern provides traders with a visual representation of a trend reversal. It's widely used due to its simplicity and applicability across different timeframes.
The Pattern:
- Formation (Market Tops):
1. Left Shoulder: Price rises, forms a peak, then falls.
2. Head: Price rises again, forming a higher peak.
3. Right Shoulder: Price falls again, then rises but forms a lower peak than the head.
- Formation (Market Bottoms):
1. Left Shoulder: Price falls, forms a trough, then rises.
2. Head: Price falls again, forming a lower trough.
3. Right Shoulder: Price rises again, then falls, forming a higher trough than the head.
Neckline:
- For Market Tops: Connect the low after the left shoulder to the low following the head to create the neckline.
- For Market Bottoms: Connect the high after the left shoulder to the high after the head to form the neckline.
Trading the Pattern:
- Wait for the pattern to complete before trading.
- Entry when price breaks below the neckline (tops) or above it (bottoms).
- Stops placed above the right shoulder (tops) or below it (bottoms).
- Profit targets calculated based on the head-to-shoulder difference and added (bottoms) or subtracted (tops) from the breakout level.
Why It Works:
- Sellers enter as price falls from its peak, reducing aggressive buying.
- The neckline marks a point where traders exit positions, driving price toward the target.
- A lower right shoulder (tops) or higher right shoulder (bottoms) signals a trend shift.
- Profit target assumes forced exits by those in losing positions.
- The neckline prompts many traders to exit, pushing price towards the target.
- Volume analysis helps confirm patterns; expanding volume (bottoms) shows increased buying interest.
Pitfalls:
- Waiting for pattern completion may require patience.
- Not all patterns lead to successful trades.
- Profit targets aren't always reached.
- External events can disrupt patterns.
- Patterns can be subjective; traders should define their criteria.
The Head and Shoulders pattern, though not foolproof, provides a structured approach to identify and act on trend reversals.
GBPUSD PRICE ACTION TRADING INV. HEAD & SHOULDERS
Hello traders! Today, we're diving deep into GBPUSD, which is showcasing a promising trading opportunity.
On its daily chart, GBPUSD has carved out a classic price action reversal pattern: the inverse head and shoulders.
Following a decisive break above the neckline at 1.24340, the price retraced to 1.25913. Capitalizing on this momentum, we've placed our long orders at 1.26551, influenced by a diamond bottom formation. With meticulous entry points and tight stop-loss measures, we've set our sights on targets at 38%: 1.32521 and 62%: 1.37530.
For a comprehensive visual representation, check out the charts here:
🔗 View GBPUSD Chart 1
🔗 View GBPUSD Chart 2
🔗 View GBPUSD Chart 3
🔗 View GBPUSD Chart 4
Stay tuned, traders! In the coming days, we'll be unveiling a plethora of setups.
If you find this analysis valuable, please support the idea with a like and consider following for more insights.
Trade Carefully, Profit Wisely (TCPLTP)!
EURAUD, Failed breakout, Short the Double topPrice action is shaping up for a bearish run as price was unable to continue the momentum and fell short of a double top level on the HTF. Looking at the lower time frames we can see a potential H&S printing retesting the March high indication more bearish price action is likely.
Look for a short to the lower trendline.
Thanks
Trade Safe
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Comment below and and share your opinion on this set up
CHFJPY, Failed Breakout. H&S to bring price lowerPrice action is looking bearish as buyers were unable to breakout of the HTF upper boundary, instead creating a strong reversal impulse followed by a continuation correction. To add confluence to this short set up, we can see a H&S pattern with price currently completing the right shoulder.
I do expect price to re test January's high, find an entry that meets your trading plan.
Thanks
Trade Safe
$GMT - Head & Shoulders + Reversal PlayMetaverse token Green Metaverse $GMT just showed a perfect reversal sign with Head & Shoulder breakout and now is looking for an uptrend after a severe downtrend.
I am going in @0.425 with a TP target of 0.4875 in sight.
For a second TP at around 0.6000 it need some solid pullbacks and retest, if done I'll go again in it.
BTCUSDTHello Dear friends
On the one-hour time frame, due to the complete consumption of the $16,665 range, the possibility of completing the head and shoulder pattern at the end of the downward trend has been strengthened.
Of course, maintaining the upward trend line is very important.
We would be happy to hear your comments