Head and shoulder is a very popular chart pattern among traders. which is a continuation pattern. Many traders get it incorrectly they try to find Head and Shoulder in an up trend and Inverse Head and Shoulder in down trend , you need to do it correctly for better results.
Here I do this analysis in three parts.
Step 1 : Previous trend should be bullish for Inverse H&S and bearish for H&S , I am sharing pictures please check this out.
Here you can see the pattern is good but the previous trend is bearish so avoiding such setups is a good choice.
and Check this setup
in.tradingview.com/c...nd-Shoulder-Pattern/
Step 2 : Head , shoulders and neckline should be proper I see many traders do it incorrectly, this pattern is clearly visible by itself without drawing a single line you can identify it.
Premium Advise : If you find it very difficult to identify proper head , shoulder and neckline then avoid this setup.
Step 3 : If you identified a proper setup , then wait for a breakout confirmation do not jump directly wait for closing of the current candle. The higher high closing is a good signal. Then check out the risk reward you are getting if SL is small and potential target you expecting is big (at least double compare to risk) then the trade is worth taking otherwise avoid.
Here I do this analysis in three parts.
Step 1 : Previous trend should be bullish for Inverse H&S and bearish for H&S , I am sharing pictures please check this out.
Here you can see the pattern is good but the previous trend is bearish so avoiding such setups is a good choice.
and Check this setup
in.tradingview.com/c...nd-Shoulder-Pattern/
Step 2 : Head , shoulders and neckline should be proper I see many traders do it incorrectly, this pattern is clearly visible by itself without drawing a single line you can identify it.
Premium Advise : If you find it very difficult to identify proper head , shoulder and neckline then avoid this setup.
Step 3 : If you identified a proper setup , then wait for a breakout confirmation do not jump directly wait for closing of the current candle. The higher high closing is a good signal. Then check out the risk reward you are getting if SL is small and potential target you expecting is big (at least double compare to risk) then the trade is worth taking otherwise avoid.
in.tradingview.com/c...nd-Shoulder-Pattern/