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The Head and Shoulders pattern is a well-known chart formation in technical analysis. It indicates a reversal from a bullish to a bearish trend, usually at the end of an upward trend.
Key Points:
- Head and Shoulders: Chart pattern signaling trend reversal.
- Formation:...
📌How to easily identify these patterns?
🟢Cup and Handle Pattern
The cup and handle pattern is a bullish continuation pattern that typically occurs after a significant uptrend. It is characterized by a U-shaped "cup" followed by a smaller consolidation known as the "handle." The cup portion represents a temporary pause or correction in the price, forming a...
What is General Pattern Failure?
General Pattern Failure occurs when a chart pattern breaks out, fails to hit target, quickly reverses then rejects off that same breakout level back inside the pattern continuing in the opposite direction of the breakout.
Pictured above in the original chart is a normal breakout on a Inverse Head And Shoulders Pattern while the...
Inverse Head and shoulders Pattern is the mirror image of head and shoulders pattern.
Read about Head and Shoulder Pattern here:
Inverse H&S Pattern is bullish reversal pattern. Signals the traders to enter into long position above the neckline.
Volume play a major role in both H&S and Inverse H&S Patterns. Usually the spike in volume on breakout is...
Right here is the dynamic head and shoulder pattern and the steps to trade them when you spot them on the chart.
For Head and shoulder pattern to effectively work, we need the left shoulder and the head to complete first.
Then we will wait for price to fall back to the support horizontal line. Then if price doesn't break the support level downward, you enter a...
Hi everyone,
Thanks for reading my idea. This, in MY opinion, is how we should consider if an inverse head and shoulders is valid or not.
What is an Inverse Head and Shoulders?
It is a downward trend reversal indicator that consists of a left shoulder, a head, and a right shoulder but inverted. I guest most of us already know how we draw the pattern. But I...
Here is some useful trend changing patterns to look out for, for me these are the easiest two to spot in the markets when starting out.
I hope this information has been useful for some people coming across it.
If you liked my educational post please hit the like button and give me a follow, this gives me the motivation to create more educational posts in the future.
Inverted H&S
Break Even Failure Rate 11%
Average Rise: 45%
Throwback Rate 65%
Percentage of Price meeting price target 71%
Trend: Downward leading to pattern
Price: Must have something to reverse, so if the decline leading to the pattern is small, expect a small rise.
Volume: Highest on left shoulder or head
“A short-term drop (0-3 months) leading to the pattern...
The head and shoulders chart pattern is a price reversal pattern that helps traders identify when a reversal may be underway after a trend is exhausted. It is of two types: Head & Shoulder and Inverse Head & Shoulder. This reversal could signal an end of an uptrend or downtrend. (Inverse Head & Shoulder with an end to downtrend in this case)
Inverse Head &...
nifty weekly inverse head and shoulder formed breakout in august 2009 and and target achieve in november 2015. target height of head 4649-2921 = 1728. therefore target 6377 achieved in nov 2015
Inverse Head & Shoulder Pattern Tutorial -
Invesre Head & Shoulders pattern is similar to Head & Shoulders pattern but reversed. The inverse Head & Shoulders is observable in a downtrend and indicates a reversal of a downtrend.
The formation of a Inverse Head & Shoulders pattern resembles a baseline or neckline with three bottom where the middle bottom is the...
With this formation, we would enter a long position at the retest of the neckline after it has been broken.
Our Stop Loss is going to be below the right shoulder at calculate percentage or 1.8 times ATR.
Our target is calculated by measuring the distance of the lower close of the head to the neckline.
80% of that distance between the head and the neckline is...
Combination of valleys where the central one is lower than the left and the right troughs shapes the Inverse Head and Shoulders pattern.
Its a reversal pattern. Upside move should appear.
Watch Neckline to be broken for confirmation.
Target is equal to the depth of Head added to the Neckline breakout point.
Many of the educational posts out there are mere examples of past chart patterns that have already completed themselves. Which this is an excellent way to study data and to help predict future movements, it tends to create over-confident traders.
As many of us know that there is no 100% guarantee to any chart pattern. However many people, myself included,...
