Hello Traders!
Have you ever wonder why the market turns back after the clear breakout of the trendline and even after a perfect retest?? Here is your answer. There must be The J shape above that trendline or above that resistance because this J shape mostly forms above the resistance.
This J shape pattern occurs again and again and it's easy to find because of its clean and clear formation.
These are the three shapes that form after the J Formation and the head and shoulder pattern is one of them.
Formation 1
You can catch the drop at the peak by selling on the reversal candle or if there are continuous bullish candles then wait for the first bearish candle and go for the sell. In formation 1 it always drops hard.
If Market already dropped hard then wait for the market to retest the bottom of the J pattern and sell it and target will be the same size as the J shape.
Formation 2
In a rare scenario, it bounces back because there must be some strong support. This is also tradeable when you see the market turning back at support you can go for the buy.
Formation 3
It's the Head and shoulder pattern and it can be traded when it's half completed with the help of this formation But it is not compulsory that Head and shoulder formation always have a clear J shape.
Have you ever wonder why the market turns back after the clear breakout of the trendline and even after a perfect retest?? Here is your answer. There must be The J shape above that trendline or above that resistance because this J shape mostly forms above the resistance.
This J shape pattern occurs again and again and it's easy to find because of its clean and clear formation.
These are the three shapes that form after the J Formation and the head and shoulder pattern is one of them.
Formation 1
You can catch the drop at the peak by selling on the reversal candle or if there are continuous bullish candles then wait for the first bearish candle and go for the sell. In formation 1 it always drops hard.
If Market already dropped hard then wait for the market to retest the bottom of the J pattern and sell it and target will be the same size as the J shape.
Formation 2
In a rare scenario, it bounces back because there must be some strong support. This is also tradeable when you see the market turning back at support you can go for the buy.
Formation 3
It's the Head and shoulder pattern and it can be traded when it's half completed with the help of this formation But it is not compulsory that Head and shoulder formation always have a clear J shape.