Description
⋅ Components of the figure "Head and shoulders"
Let's take a look at every component of the figure:
- The descending trend is necessary in front of the figure, because the head and shoulders are a reversal figure.
- the left shoulder marks the maximum of the current upward trend.
- Falling of the price after completes the formation of the first leverage.
If we do not fall from the edge of the leverage, the pattern can work out.