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randallbachir
Oct 31, 2019 5:00 AM

Head and Shoulders Short

Wells Fargo & CompanyNYSE

Description

In the following graph we can appreciate the Head and Shoulders pattern. This pattern is known for being a reversal pattern as shown coming from an upward trend in the first shoulder (point A), reaching the peak and the head (point C) and ending on a downward trend on the right shoulder (point B). Also the base of the pattern is known as the neck line. I recommend going bearish in this position with the loss set on the size on one of the shoulders and the profit on the size of the head as depicted in the short position.
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