EDUCATION: Head And Shoulders
Hello, dear subscribers!
Today we are going to consider the most reliable chart pattern - Head and Shoulders (HS). We ask you to support us with likes, it's not difficult for you and it will help us a lot. Thank you!
The Head and Sholders chart pattern is the most popular pattern and if you use it in correct way it can give you a relevant confirmation for your trades.
First of all we should understand that HS is the reversal pattern. It has a bad perfomance when it is used for the trend continuation definition.
As you can see on the chart the price was in uptrend for a long period of time.
After that two price swings formed the left shoulder and the head, but at the moment of head formation it is not understandable that it is HS pattern.
You should observe the market carefully when the price bounced off the left shoulder top level and started to form the right shoulder.
The HS formation is completed when the price reached the neck line area. This is a nice moment to short. Let's talk about the neck line. It is not obligatory should be horizontal. It can be ascending or descending in the dependence of lows levels between left shoulder and the head and the head and the right shoulder.
DISCLAMER: Information is provided only for the educational purposes and should not be used to take action in the markets.
Today we are going to consider the most reliable chart pattern - Head and Shoulders (HS). We ask you to support us with likes, it's not difficult for you and it will help us a lot. Thank you!
The Head and Sholders chart pattern is the most popular pattern and if you use it in correct way it can give you a relevant confirmation for your trades.
First of all we should understand that HS is the reversal pattern. It has a bad perfomance when it is used for the trend continuation definition.
As you can see on the chart the price was in uptrend for a long period of time.
After that two price swings formed the left shoulder and the head, but at the moment of head formation it is not understandable that it is HS pattern.
You should observe the market carefully when the price bounced off the left shoulder top level and started to form the right shoulder.
The HS formation is completed when the price reached the neck line area. This is a nice moment to short. Let's talk about the neck line. It is not obligatory should be horizontal. It can be ascending or descending in the dependence of lows levels between left shoulder and the head and the head and the right shoulder.
DISCLAMER: Information is provided only for the educational purposes and should not be used to take action in the markets.
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