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Headshoulders

ROSEUSDT is testing the weekly resistance!the price is testing the weekly resistance on 0.316$, where the price created the neckline of the head and shoulders, and where the market has a supply zone. Nice volume is incoming right now. on the 4h timeframe the price had a breakout from the 4h resistance on 0.24$ and a great breakout from the daily dynamic resistance. How to approach? The price needs to have a new breakout from the confluence area and retest it as new support. a Breakout is not enough, the price needs to satisfy our rules for a new long position. The next valid resistance is 0.35. According to Plancton's strategy , we can set a nice order ––––– Keep in mind. 🟣 Purple structure -> Monthly structure. 🔴 Red structure -> Weekly structure. 🔵 Blue structure -> Daily structure. 🟡 Yellow structure -> 4h structure. ––––– Follow the Shrimp 🦐
Long
by InkyGrip
2
Educational: Head and Shoulder Reversal Patterns.There are a number of reversal patterns that playout time and time again. The most reliable of the reversal patterns is the "Head & Shoulders" top and bottom. Some technicians don't like to use the term head & shoulders as it's used quite a bit and not all reversal patterns are confirmed and end end up being consolidation patterns instead. Whatever you like to call the pattern is irrelevant. What is important is that you can identify the pattern as it signals possible distribution and reversal of the prior trend. Some Background on Chart Patterns: Charles Dow first introduced Dow Theory in his writings in the Wall Street Journal well over 100 years ago. Dow Theory is the origin of trend following. In 1948 Edwards and Magee introduced Technical Analysis of Stock Trends. This book expanded on the work done by Dow and introduced chart patterns as a system to identify changes to the existing trend. In 1997 John J. Murphy introduced Technical Analysis of the Financial Markets which is considered by many to be the definitive work on trend analysis and chart patterns first introduced by Dow and refined by Edwards and Magee. If you're not familiar with these works I highly suggest looking into each. Identifying the Pattern: 1) There must be a trend in place. If the H&S pattern is a topping pattern then the prior trend must be an uptrend. If the H&S pattern is reversed and is a bottoming pattern then the prior trend must be a down trend. 2) As the pattern unfolds and the peaks are formed, a clearly defined support line called the neckline must be present. 3) Volume will confirm the pattern. Volume should be decreasing at the peak of each point in the left shoulder, head, and right shoulder. Confirming the Pattern: 1) The existing trendline is broken. 2) The neckline is broken. 3) The neckline will now act as resistance. (Often, but not always the price will try to reclaim the neckline shortly after breaking.) The Pattern is Invalid: 1) If volume is not receding at each peak then the technician should be skeptical of the validity of the pattern. 2) The right and left shoulder should be similar in height. Often times they are not, if in doubt use volume as your indicator. 3) Either the neckline or the prior trendline is retaken as support. Forecasting a Price Target: Using the measured move technique, the distance from the peak of the head to the neckline can be forecasted from the spot of the neckline being broken downwards. This distance can be used as a minimum downside price target. Example: This is an Apple Daily Line Chart from November 2020 to March 2021. All the important elements of a Head and Shoulders Reversal Pattern are evident. 1) A prior trend was in place. 2) The formation of the left shoulder, head, and right shoulder. 3) Retreating volume at each peak. 4) Breaking of the trendline. 5) Breaking of the Neckline. 6) Price tries to recapture the Neckline but fails. 7) Minimum downside target is reached. Conclusion: Pattern recognition is as much of an art form as it is a science. As technicians we want to draw our lines with fat crayons vs thin pencils. Patterns don't always follow the text books. The key is to understand the main tenants of each pattern and try to spot their formations before they confirm. Thanks for taking the time to read this. Good luck to all!
NASDAQ:AAPLEducation
by Breakout_Charts
7
What is Head and shoulders pattern and how to trade with that?*The Head and Shoulders ( Bearish ) pattern is one of the most popular and best known price patterns in trading. This is a very accurate trading signal if you know how to use it properly and flexibly. *What is Head and Shoulders? How to identify and characterize Head and Shoulders is the name of a special type of price pattern that usually appears at the end of uptrends. This is a signal of future downtrends. It is called Head and Shoulders because the shape of this pattern on the price chart is similar to that of the human body including Left Shoulder, Head, and Right Shoulder. The line connecting the two troughs of the shoulders is often called the neckline. In fact, this pattern is perfect when the Neckline is horizontal (the prices of the two lows are approximately the same). How to trade with this: ENTRY POINT : Right after the candlestick breaks out of the neckline (or at the Retesting the neckline ) STOP-LOSS : At the peak of the right shoulder. TARGET : Usually, Head and Shoulders is a pattern for starting a downtrend. Therefore, adjust the first target to the height of the neckline to the top (H) of the pattern and adjust the next targets according to the past price and chart. This is the academic shape of this pattern, in the future we will publish other types of head and shoulder patterns 📚 . Please follow our page to be informed as soon as the materials are published. Thank you all for supporting our activity with Likes 👍 and Comments ❤️
Education
by NamchaTa
EVR - broke neckline on strong volumeEVR formed a bearish Head & Shoulders and 1st started to break the neckline on 20 Jan, however it began a strong shortly after that brought it back above to retest the declining 50day Moving Average. The death cross (50 day MA crossing below the 200 day MA) is now apparent, so are lower highs and lower lows. Last Friday's break of the neckline (again) was on very high volume. Tested some shorts with a tight stop loss just above 130. The theoretical target of this H&S will be aroud 83. However, I would protect profits with trailing stops if trades goes my way. 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. Please your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Thank you.
NYSE:EVRShort
by Juliac
How to Measure Head & Shoulders TargetWhat Is a Head and Shoulders Pattern? A head and shoulders pattern is a chart formation that appears as a baseline with three peaks, where the outside two are close in height and the middle is highest. In technical analysis, a head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal. The head and shoulders pattern is believed to be one of the most reliable trend reversal patterns. It is one of several top patterns that signal, with varying degrees of accuracy, that an upward trend is nearing its end. The first and third peaks are shoulders, and the second peak forms the head. The line connecting the first and second troughs is called the neckline. An inverse or reverse head and shoulders pattern is also a reliable indicator that can signal that a downward trend is about to reverse into an upward trend. In this case, the stock's price reaches three consecutive lows, separated by temporary rallies. Of these, the second trough is the lowest (the head) and the first and third are slightly shallower (the shoulders). The final rally after the third dip signals that the bearish trend has reversed and prices are likely to keep rallying upward. The opposite of a head and shoulders chart is the inverse head and shoulders, also called a head and shoulders bottom. It is inverted with the head and shoulders top used to predict reversals in downtrends. This pattern is identified when the price action of a security meets the following characteristics: The price falls to a trough and then rises; the price falls below the former trough and then rises again; finally, the price falls again but not as far as the second trough. Once the final trough is made, the price heads upward, toward the resistance found near the top of the previous troughs. Measuring head and shoulders price target is simple. You'd measure the peak of the head down to the neck line, and then drag it to the point where the stock breaks out from the pattern.
NASDAQ:LCIDEducation
by MoonBets
1
YFI/Usdt .......Head and shouldersHello friends, as a triangle should be formed in 4 hours in RSi , then the step is determined to be corrected again or finally completed. Bollinger bands also need to be modified for the lower band area and then we will wait to see if the correction will continue. I hope it ends because I am personally at a loss. And I will lower the average. Wait a minute, dawn is near and we will see the price of 11,000 in the long run. Always divide your assets into 4 parts and buy step by step. My advice to you
Long
by Baharmostofi
1
Bitcoin Expires, can $37.3k support hold? or 29k BTC next?Howdy gang... plz thumbs up if you like the chart quick update to show some simple price action and support levels while bitcoin broke down after a good push from the previous days US open Clear head and shoulders, recent death cross techincals, long squeezes all contriubting to the bearish price right now, yet no need to panic... if the level at 37.3K can hold, we may breathe a sigh of relief but if not then its open territory for bounces from the MA's or going as low as 29K, the previous years low bulls will want to see this current level hold with RSI and indicators showing oversold on the daily - if price can get above 42k today, ill change my short term bearish vision few differing fundamentals in favour and against, so hard to call in that area right now, lots of fear and panic, so time to be greedy, maybe go do some shopping! as the cryptoride continues, don't get emotional and use this as a opportunity if you can WHAT do YOU think? ....Hold at this level? 40k or towards 29k??? over the next week or so? Let us know below....
BITFINEX:BTCUSDShort
by majorlee
2
BTC - 2 Head and Shoulders scenariosBTC has formed what looks to be a head and shoulders formation on the Daily, indicating more pain could be ahead for the OG crypto that's down 37% from it's peak earlier this year. The typical way to trade a head and shoulders pattern is to sell when we see a break through the neckline, which is currently acting as support but a break of this level could see price drop to the previous key level around 30k. That is, of course, if you consider the huge wick on December 4th down to the neckline to be a valid component this formation. If we use a line chart, ignoring the lows of the day and just focusing in on the closes, it changes the formation completely. This gives us just a second touch of the neckline, with a right shoulder yet to form. If this is the real pattern forming, we could see a surge back to the ~52k level in the coming weeks. The market is reaching a decision point, and price action driving us above or below this support level/neck line will give the indication of a short term trend we can jump on.
Short
by HayeTrading
13
PYPL - could have bottomed outPYPL broke down from a messy Head & Shoulders formation of sorts (head-shoulder-head-shoulder) in Oct and had been trending down strongly since. It eventually came down to about 180 on 1st Dec last week, which incidentally was it's H&S target and also a possible horizontal support zone here. However we only see a decisive bounce off this level today, opening with a gap up, leading to the potential formation of a bullish engulfing candle on the weekly timeframe. With a confluence of factors (H&S target, horizontal suppport and potentially bullish engulfing on weekly), I am fairly optimistic that it could have bottomed out. I will venture a long today with initial stop stop slightly below $179. Will take partial profits around $225 (a gap fill) and protect remaining positions with trailing stops. 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 is important! Thank you. Do give me a thumbs up if you agree. Feel free to let me know what you think! :)
NASDAQ:PYPLLong
by Juliac
USDZAR big move incoming !Hello everyone, I hope you all doing well. I've been watching this pair for months now, it has respected technical price action very well so far, we had this huge heads and shoulders formation ( shown on chart ) in which we broke out yesterday successfully, I believe once we got here there is no going back. * This is not a financial advice, use the idea with your own strategy and risk management * I personally like this very much. check it out for yourself ;) I'm also writing about most of crypto currencies; Follow me on TRADINGview so you wouldnt miss out any updates. Like if you think this was helpful and let me know on the comment section below. * This is not a financial advice, use the idea with your own strategy and risk management *
Long
by Algo_Analyst