NATGASUSD formed a bullish reversal chart pattern early this week but the breakout was rejected and it pulled back down.
On the 4hours time frame chart, the price of NATGASUSD has been spotted forming a chart pattern called THE HEAD and SHOULDERS BOTTOM.
The head and shoulders chart patterns are more reliable chart pattern that stands to play out when in market.
As mentioned above, the head and shoulders bottom is a chart pattern that indicates the down trend is gradually coming to an end and the bulls are seeing some potential for price reversing back up.
The head and shoulders chart patterns are determined by there neckline(the resistance)which plays an important role.
The head and shoulders chart pattern is one of the more common reversal indications. As shown above the pattern is yet to be completed.
The head and shoulders chart pattern is complete when the both shoulders and the head formed and price has broken the neckline.
This makes a trader to quickly decide to take a position to go long.
The levels considered to be very important on the chart is the neckline as the level from the neckline down to the head is used to measure the take price on price. Price needs to close above the neckline to make the pattern valid.
Breakout level : $2.370
Resistance 1: $2.406
Resistance 2: $2.453
Resistance 3: $2.507
Good luck to everyone! Click the follow button to stay tuned for more trading ideas! Like the idea? Hit the like button!
Ideas published should not be referred to as an investment advice.
On the 4hours time frame chart, the price of NATGASUSD has been spotted forming a chart pattern called THE HEAD and SHOULDERS BOTTOM.
The head and shoulders chart patterns are more reliable chart pattern that stands to play out when in market.
As mentioned above, the head and shoulders bottom is a chart pattern that indicates the down trend is gradually coming to an end and the bulls are seeing some potential for price reversing back up.
The head and shoulders chart patterns are determined by there neckline(the resistance)which plays an important role.
The head and shoulders chart pattern is one of the more common reversal indications. As shown above the pattern is yet to be completed.
The head and shoulders chart pattern is complete when the both shoulders and the head formed and price has broken the neckline.
This makes a trader to quickly decide to take a position to go long.
The levels considered to be very important on the chart is the neckline as the level from the neckline down to the head is used to measure the take price on price. Price needs to close above the neckline to make the pattern valid.
Breakout level : $2.370
Resistance 1: $2.406
Resistance 2: $2.453
Resistance 3: $2.507
Good luck to everyone! Click the follow button to stay tuned for more trading ideas! Like the idea? Hit the like button!
Ideas published should not be referred to as an investment advice.