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Headnandshoulders

EURNZD - Head and Shoulders, Selling a retestDAY TRADE - EXPIRES AT 9PM (UK) Trade Idea A bearish Head and Shoulders has formed. A break of the neckline is required to confirm the formation. The measured move target is 1.6300. Negative overnight flows lead to an expectation of a weaker open this morning. Further downside is expected although we prefer to set shorts at our bespoke resistance levels at 1.6750, resulting in improved risk/reward. We look to Sell at 1.6750 Stop: 1.6800 Target 1: 1.6625 Target 2: 1.6600
Short
by Signal_Centre
EURGBP. Trade what you see, not what you think.A clear ascending channel that has been broken and has been retested on the 1hr time frame with a bearish pin bar. Market structure has changed and now potentially created a lower high. This change in market structure has now potentially created a price reversal pattern, a head and shoulders. I will be waiting for price to break the 0.8877 level ( kneckline), make a pullback and valid retest and take short position. The red zone shows an area of price sensitivity. Let me know your thoughts, Thanks Nath
Short
by Nathanp7
GBPUSD-Weekly Market Analysis-May19,Wk3GBPUSD is showing a downtrend movement on the daily chart. On the 4-hourly chart, the market does show a possible potential head and shoulders. I will definitely need to wait for the candle to touch the read shoulder before I can engage. On the smaller timeframe, you can see the blue bullish bat pattern. I have already engaged this, thought market move back to my entry price but I'm going to follow my rules and wait for the 1st target being hit, then I will shift stops to entry. Love this analysis? Like it and Share it with your friends.
Short
by RaynLim
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
GBPNZD Potential HeadnShoulders.GBPNZD has now completely retraced from the last push to the upside, Gbreaking a key zone and forming a neckline to give us a potential head n shoulders early entry. With Fib clusters at the entry zone and notice the large supply candle it is also 50% giving us a strong confluence sell target area in the market for a continuation to the downside. To add confidence the MACD is building a hidden divergence signal to suggest a continuation of current movement.
Short
by TBonch
AUDCAD Trading made simpleAs you can see we have upward trend with a series of higher highs and high lower being squeezed and forming a wedge. Then price makes a lower low at 0.94990. This is a change in market structure, so we can assume price is now in a downward trend. Price has then pulled back to a resistance area around 0.9025 to create a lower high giving more confirmation to a downward trend. I have drawn a descending channel to show the direction of predicted movement of price. Within the descending channel a small upward wedge has been created (red trend lines). The wedge is a correction in price before price breaks out and continues to move towards the downside. Remember… Impulse, Correction, Continuation. As well, I see a head and shoulders forming which are marked by the blue lines, a head and shoulders suggests a reversal in the direction of price, so price moves towards the downside. We can assume it’s a head and shoulders because of market structure and price has come from the upside for a period of time. Fairly simple price action in my opinion. Let me your thoughts please and any improvements or suggestions would be great. Thanks Nath
Short
by Nathanp7
BTC within a chance for a inverse head and shoulders pattern.Hi all, Been absent for a while watching whats been happening. In my last post all those months ago I got caught up in the hype of everything. Now after taking some time away to learn and reflect on it all, im back with a fresh perspective and analysis. A inverse H&S pattern is starting to emerge from the charts. This doesn't by it self indicate a trend reversal, it does however suggest it. Ina few days when we test the neck line we may see BTC regain some lost territory. I doubt that will be back to the giddy highs we saw this time last year. But a swift shot up to test 4200-4350 where a small line of resistance will form, through that to meet heavy resistance at 5k. I wont estimate past that as it would be foolish. To look for will be how BTC behaves in the next few days. If it can complete the reverse H&S we may have an opportunity to go long. Until then I would hold off and keep what you have in fiat. Post your thoughts and question below guys, ill answer any points you have and am always open to debate if you disagree with anything i have written here. Remember though folks, this is not financial advice and any trades you take are at your own risk. I, like all traders will be watching BTC and will take positions accordingly. Stay frosty, Moglli, out.
by Earl_of_Crypto
EURUSD STARTING THE WEEK UNDER PRESSUREThe euro has started the new trading week under pressure against the greenback, following the heavy decline in the pair last Friday. The EURUSD pair remains short-term bullish while trading above the 1.1600 level with the inverted head and shoulders pattern still valid, despite the heavy technical rejection from the 1.1720 region. Sellers will attempt to break the 1.1577 support level, while buyers to attempt to break the neckline of the bullish pattern. The EURUSD pair remains bullish while trading above the 1.1600 level, key resistance is located at the 1.1730 and 1.1790 levels. If the EURUSD pair moves below the 1.1600 level, sellers are likely to test towards the 1.1577 and 1.1528 support levels.
by OctaFX_Official
Ethereum Showing WeaknessRight now, Ethereum is not showing the best signs of strength. 1.) Its current head and shoulder bottom has a downward slope, however, while Bitcoin has a horizontal slope proving how much more bullish bitcoin is comparatively. 2.) The bottom of the inverted head and shoulder did have less volume and it did show a bullish divergence which gives this inverted head and shoulder more robustness. 3.) The breakout was much weaker than I expected, especially for Ethereum, it barely made it past the neckline. Currently: 4.) Ethereum is at the neckline, retesting it, but that is okay, so long as it does not pass the neckline it will not compromise the inverse head and shoulder. This means it would need some independence from bitcoin. A successful repulsion of the movement down would place the price objective of the inverse head and shoulders around 570.
BITFINEX:ETHUSD
by CuddlyCuddles
Bitcoin bounce expectedThis is not a trade idea, just analysis as it is counter-trend and therefore higher risk. Now that Bitcoin has hit a 127% Fib Extension, it is probable to see profit taking. With this in mind, we could see price push up to the 38.2% Fib line. Should this occur, it might start to develop a potential inverse head and shoulders pattern which would complete near the 61.8% Fib line. Short term bullish. Disclaimer: This is only my opinion, make of it what you wish. It is not financial advice.
BITFINEX:BTCUSDLong
by hedgewithcrypto
An idea on BTCUSDHi! Today i would like to share my idea on BTCUSD. From the 1 hour chart, we see that a bear pennant is formed. On top of that, if you look at the bigger picture, a head and shoulders pattern is there. I have 2 conclusions for this; 1. First is that after reaching the resistance it would test the 0.236 fib level and break the resistance to get to the 0.382 fib level and test the 0.382 fib level again. This argument is supported by the fact that the RSI level is still at the lower 40s, which is quite hard for it to go down to the 6700 USD price level. 2. Again, after reaching the resistance, it would break the 0.236 fib level and test the support levels of the bear pennant, then it would test again the 0.236 fib level before going back down to the 6700 USD price level to complete the head and shoulders pattern. Disclaimer: This is not a financial advice! Thats all from me! Any feedback or comments are welcomed!
BITFINEX:BTCUSD
by evntdra
4
OMNIBTC chart packed with all sorts of patterns and formations There are many interesting formations on this chart. First of all is double bottom where pair reached 0.00100000 in March this year and October 2015. It is clearly visible on weekly chart. We have upside down head and shoulders formation created from doji candles (it’s look better on hourly chart) . Rounded bottom (marked with blue curved line) . Pair is trading above 200 Ema which is bullish sign. This pair also established support level around 0.0020000 which is marked with bold black line. I marked with black parallel lines most of the GAP above the 0.0020000 area so you can see how market is reacting to them (GAP’s are treated as the solid support to push higher which is suggesting strong bullish potential) . This pair with all the mentioned formation looks very bullish to me and I’m pretty sure that this pair will reach 0.0150000 or maybe 0.020000 in future.
OLong
by Krystiannwk
2