This pattern does not perform well in a bull market, and performs best in a bear market.
Some would just call this an ugly top, or a complex head and shoulders pattern, as there are multiple shoulders. The complex variety can have multiple heads and/or multiple shoulders.
This is a tall structure. The neckline is a source of Strong support until it is broken with conviction.
PTON has pierced the support of the neckline, but was a brief piercing and price is now floating above the neckline. The pattern is not valid unless neckline is broken and a downtrend is in place. The neckline can be horizontal or it may slope.
Head and shoulder tops are reversal patterns so there needs to be a prior uptrend to reverse.
I would be very, very, very safe if I were in this long right now. These patterns can have pull backs (pull ups), a break back up can be a pull back in a downtrend. Good to be careful if you are long or thinking of going long and you see an ugly top.
I have noted that in a lot of cases, securities go down much slower than they go up. In other cases they drop like a bomb, but can stay in recovery mode down at the bottom for a very long time requiring patience that is hard for me sometimes. But I am working on it (o:
No recommendation.
I reposted this for clarification. Go with your gut (o:
Some would just call this an ugly top, or a complex head and shoulders pattern, as there are multiple shoulders. The complex variety can have multiple heads and/or multiple shoulders.
This is a tall structure. The neckline is a source of Strong support until it is broken with conviction.
PTON has pierced the support of the neckline, but was a brief piercing and price is now floating above the neckline. The pattern is not valid unless neckline is broken and a downtrend is in place. The neckline can be horizontal or it may slope.
Head and shoulder tops are reversal patterns so there needs to be a prior uptrend to reverse.
I would be very, very, very safe if I were in this long right now. These patterns can have pull backs (pull ups), a break back up can be a pull back in a downtrend. Good to be careful if you are long or thinking of going long and you see an ugly top.
I have noted that in a lot of cases, securities go down much slower than they go up. In other cases they drop like a bomb, but can stay in recovery mode down at the bottom for a very long time requiring patience that is hard for me sometimes. But I am working on it (o:
No recommendation.
I reposted this for clarification. Go with your gut (o: