PRICE ACTION: HEAD AND SHOULDERS
• In an uptrend, price action finds first resistance (0) that forms left shoulder's high, where it reverse direction and goes downwards till finding support (1), completing the left shoulder formation.
• Price action reverses direction from that support (1) and goes upwards till finding second resistance (2) that forms head's high, where it reverses direction and goes downwards till finding support (3), completing the head formation.
• Price action reverses direction from the last support (3) and goes upwards till finding thirdresistance (4) that forms right shoulder's high, where it reverses direction going downwards.
• The pattern is completed when price action breaks the neckline at point (5) downwards.
• In an uptrend, price action finds first resistance (0) that forms left shoulder's high, where it reverse direction and goes downwards till finding support (1), completing the left shoulder formation.
• Price action reverses direction from that support (1) and goes upwards till finding second resistance (2) that forms head's high, where it reverses direction and goes downwards till finding support (3), completing the head formation.
• Price action reverses direction from the last support (3) and goes upwards till finding thirdresistance (4) that forms right shoulder's high, where it reverses direction going downwards.
• The pattern is completed when price action breaks the neckline at point (5) downwards.
Trade closed manually