Posts Tagged ‘Head and Shoulders Pattern’


Head and Shoulders Pattern Explained

In this video, you will learn about the head and shoulders pattern. The psychology behind this pattern is that the market attempts to make higher highs in an uptrend, but the trend runs out of steam, forming two highs and a higher high, resembling a head and two shoulders. As you can see on the chart, the market is in an uptrend. At some point, the bulls run out of steam, encounter resistance, and form the left shoulder. The market attempts […]

How Does Head and Shoulders Pattern Work?

In this video, you will learn how to identify and trade using the head and shoulders pattern. This is a bearish reversal pattern. You locate this pattern at the top of an uptrend. It is characterized by a left shoulder, head, right shoulder, and a neckline, which acts as support. Once you have identified this pattern, one way to trade this pattern is to wait for the price to break below the neckline. Now, you can […]