Posts Tagged ‘head-and-shoulders’

The head and shoulders pattern is formed at the top of an uptrend. It is a bearish reversal pattern. The market forms the first high, which is the left shoulder. It is followed by a higher high, which is the head of the pattern. It is then followed by a lower high, which is the right shoulder of the pattern. The important thing to note is that you need to pay attention to the neckline, which is the support level. To trade […]

The head and shoulders pattern is a bearish reversal pattern found at the top of an uptrend. It consists of three successive peaks. The middle peak is the highest, which forms the head. The two outside peaks are lower than the middle one and form the shoulders. You can draw a trendline connecting the reaction lows, which is the neckline of the pattern. You need to observe a change in volume when the breakout of the neckline occurs. Also, the broken support […]

In this video, you will learn about the head and shoulders pattern. This pattern is observed at the end of an uptrend. At some point, the bulls lose strength, and the market forms the high, which is the left shoulder. The market forms a higher high due to resistance, which is the head. Then the market forms a lower high, which is the right shoulder of the pattern. The pattern becomes complete when it breaks the neckline, which is […]

In this video, you will learn about the head and shoulders pattern. You can locate this pattern at the end of an uptrend, when the uptrend loses momentum. This is a pattern which is easy to spot. Initially, the price is an uptrend, as you can see on the chart. At some point, the trend loses force, and forms the left shoulder. It finds support and pushes higher to form the higher high, which is the head. Then […]

Trading the head and shoulders chart pattern in the common way is to treat it as a reversal pattern and the pattern is named due to the shape of the pattern that resembles the head and shoulders of a human. There are three peaks with the middle one being the highest. The fourth feature is called the neckline. It is formed by drawing a line between the two depressions. Classical technical analysis defines an uptrend as a series of higher highs and higher lows. […]

Head and Shoulders is a bearish reversal pattern which is formed after an uptrend and consists of a peak as a left shoulder, a higher peak as the head and a lower peak as the right shoulder. A neckline is being drawn connecting the 2 lows between the shoulders. Lets look at the chart. In an uptrend the first peak forms the left shoulder and after a retracement price pushes higher and forms the head. The bull trend now gets exhausted and bears push the price […]

This video is tenth lesson in a series on technical analysis for  active traders of forex markets. This 4th lesson in a series on charting patterns which looks at the head and shoulders pattern and the reverse head and shoulders pattern and how traders use this in the forex market.

This video is nineth lesson in a series on technical analysis for  active traders of forex markets. This 3rd lesson in a series on charting patterns which looks at the head and shoulders pattern and how traders use this in the forex market.

This Forex video presents a detailed tutorial for trading the head-and-shoulders chart pattern — a rather popular chart figure that often appears near the trend tops. This is the 6th lesson in the full Forex course.

A simple explanation of what Head-and-Shoulders pattern is, how it can be detected and used in Forex trading. Both the normal and inverse versions are mentioned.