Head and Shoulders Definition:
A head and shoulders pattern is also a trend reversal formation.
It is formed by a peak (left shoulder), followed by a higher peak (head), and then another lower pea k (right shoulder).
A “Neckline” is drawn by connecting the lowest points of the two troughs. Neckline support does not need to be strictly horizontal.
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Possible H&S ? Can we see a fall down to 1.68919 support line ?
Please tell me if this even counts as H&S, I will be very grateful.
Any objections/suggestions are welcome.
As we see, price formed a high (left shoulder)
The correction was pretty tough, went back nearly all the way (first weak signal that SHS might be forming)
the next high could not get much higher (head)
the correction was very tough again and went back to the level of the former correction,
The next high (right shoulder) could not go higher than the second (head),...
Hey Traders around the world. This is an educational post for the traders who wants to apply Fibonacci tool in head shoulder pattern,just to make it more efficient. This was first introduced by Larry Pesavento in his book ( Trade what you see).
First thing is to identify the Butterfly pattern: The first profit objective will be at 78.6 retracement of AD of the...
