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Head and Shoulders

Head and Shoulders PatternHead & Shoulders Patterns Classic Reversal Structures Every Trader Should Know 1. Head & Shoulders (Bearish Reversal) The Head & Shoulders pattern is a bearish reversal formation that typically appears after an established uptrend. It signals a possible shift from bullish to bearish market conditions. This structure consists of three swing highs: • Left Shoulder – first peak • Head – highest peak • Right Shoulder – final peak, similar in height to the left shoulder Identification Rules • Left Shoulder < Head > Right Shoulder • Left Shoulder ≈ Right Shoulder (symmetry improves reliability) Volume ideally declines as the pattern forms, showing weakening buying pressure. Between the peaks are two pullbacks (swing lows). Connecting these lows forms the neckline. A confirmed break below the neckline completes the pattern and signals bearish continuation. 2. Inverse Head & Shoulders (Bullish Reversal) The Inverse Head & Shoulders is the bullish counterpart and typically forms after a downtrend. Instead of peaks, the pattern is made of three troughs: • Left Shoulder – first low • Head – lowest point • Right Shoulder – higher low, similar to the left shoulder Identification Rules • Left Shoulder > Head < Right Shoulder • Left Shoulder ≈ Right Shoulder (symmetry improves reliability) Volume often contracts during formation and may expand on the neckline breakout. The highs between the troughs form the neckline. A break above the neckline confirms the bullish reversal. 3. Complex Head & Shoulders Variations Complex variations follow the same logic as standard H&S patterns but include: • Multiple shoulders on one or both sides • More than one head Despite the added structure, these patterns still rely on: • Symmetry • Clear neckline definition • Breakout confirmation Traders should treat them the same way as standard formations, but with extra patience. 4. Measurement Rule (Profit Targets) Standard Head & Shoulders (Bearish) • Measure the vertical distance from the head to the neckline • Subtract that distance from the neckline breakout level • This projects a downside target Inverse Head & Shoulders (Bullish) This is very simple. It’s exactly the same as the above Standard Head & Shoulders (Bearish), but inverted. Same concept. Just upside down. ** Tip ** When multiple heads exist, use the most extreme head (highest for bearish, lowest for bullish) for measurement. Final Notes for Traders Head & Shoulders patterns remain effective because they visually represent trend exhaustion and shifting market psychology. When trading these patterns, always emphasize: • Structure first • Confirmation second • Risk management always
FOREXCOM:BTCUSDEducation
by TaylorDeMario
3
GOLD - HTF Continuation w/ LTF Head & Shoulders ConfluenceGold recently confirmed a bullish trend after breaking and closing above its previous structure high. That move created a new extension, which tells us the market is positioned higher and should eventually look for another extension following a pullback. That pullback is exactly what we’ve seen. Price retraced into previous structure resistance, which has now flipped into structure support—a logical area to watch for bullish continuation. Dropping down to the 4-hour chart, price shows signs of exhaustion via the development of a potential head and shoulders pattern. At the moment, the pattern is not valid until price breaks and closes above the neckline. But this can be a good excuse as a entry reason for the bigger bullish continuation play. If you have any questions or comments please leave them below & I wish you guys a GREAT & SAFE 1st week of trading. Akil
OANDA:XAUUSDLong
by Akil_Stokes
2
XAUUSD Short Setup Based on Key LevelsI identified an A key level on the daily timeframe where the price strongly rejected and closed below it. This reaction signalled bearish intent, establishing a sell bias. With that higher-timeframe context in mind, I began looking for sell opportunities. On the 4-hour timeframe, price formed a QMKL (Quasimodo Key Level) , structurally this is similar to an inverse head-and-shoulders pattern . This alignment with the daily bias further increased confidence in a potential short setup. For execution, I refined entries on the lower timeframe using a supply zone as the primary entry area. This supply zone remains valid as long as the SBR (support-turned-resistance) key level, marked on the chart as (1), has already been mitigated. If the SBR level remains unmitigated, then it becomes the preferred entry instead of the supply zone . The reasoning is simple: an unmitigated key level acts as a liquidity magnet, making it a higher-probability reaction area.
FOREXCOM:XAUUSDShort
by PR-0x3E7Sys
ICICI PRULIFE – Ready for Upside or Trap?ICICI PRULIFE – Ready for Upside or Trap? 🔍 📌 Trade / Swing Setup • CMP: ₹678 • SL: ₹599 • Target: ₹797 📍 Structure & Logic • After a sharp fall, stock failed once at 61.8% Fib and corrected • Now re-attempting breakout from the same zone • Structure suggests two possibilities: 1️⃣ Rounding bottom → direct breakout above ₹678 2️⃣ Inverse H&S → short consolidation, then breakout • Key confirmation level: ₹694 – Sustained move above this = upside confirmed • In both cases, target structure remains same 🧠 View: This is a structure-based setup, not blind bullishness. If breakout comes → momentum follows. If not → expect time-wise consolidation (no panic). ⚠️ Clarification: This is an independent analysis based purely on technical and market study. No part of Religare is involved in this view or recommendation. 📝 Important: I am not responsible for any loss or profit incurred. I am not taking any fees — sharing for educational purposes only. 📉 Disclaimer: Not SEBI-registered. Please do your own research or consult a financial advisor before taking any investment decision.
NSE:ICICIPRULILong
by satyam15
1
USDJPY – Bullish Drive Toward Second Supply Zone (RTM Outlook)On the Daily structure, USDJPY remains bullish — and the current upward leg began from a key pivot, where price reacted to a QML level and broke its 1H descending trendline, giving strength to buyers and initiating this expansion. Currently on the 4H, price is sitting inside the first supply zone: 156.900 – 157.200, which has already been tapped once. Buyer strength here is slightly weaker than the previous touch — but the bullish structure is still intact. For that reason, my primary expectation remains continuation upward toward the second supply zone: 157.333 – 157.577. That zone is where I will reassess – since that's where a true confrontation between buyers and sellers is more likely to determine whether a larger correction becomes meaningful. On the 1H timeframe, price is already inside supply. Aggressive (reactive) traders might look for a CHOCH (Change of Character) inside the zone as a trigger to anticipate early correction — but for me, at this moment, I remain on the side of continuation until price reaches the second zone. Right now, the most valuable action is simply watching how price behaves at the next zone, rather than predicting too early. Updates will follow once price reaches that area — and that’s the moment where the real market decision will unfold. `Pouryabdi
Long
by fxpouryabdi
TMPV | Buy @LTP | SL below 355 | 1st Target 388, 400, 450Disclaimer (Please Read Carefully): This is not investment advice. The stocks shared here are purely for educational and informational purposes. Please do your own research or consult with a financial advisor before making any investment decisions. ****************************************************************************************************************** Stock market में सिर्फ risk ही risk होता है। Market में survive करने का एक ही तरीका है, stop loss को पूरी discipline के साथ accept करना। अपनी capital को protect करने का इससे बेहतर कोई तरीका नहीं है। मैं जो भी stock यहाँ शेयर करता हूँ, वो या तो मेरी existing holding में होता है, या फिर मैं उसी level पर fresh buying या add on करता हूँ जिसे मैं mention करता हूँ। मैं हमेशा buy करते समय अपने system में stop loss ज़रूर लगा देता हूँ, और मेरे लिए stop loss, target से भी ज़्यादा important होता है। Target achieve होने के बाद मैं पहले profit book करता हूँ और फिर retest या fresh breakout का इंतज़ार करता हूँ। मैं सिर्फ breakouts पर buy करता हूँ, कभी भी support पर नहीं। और मैं resistance पर sell भी नहीं करता। ****************************************************************************************************************** The stock market involves risk, risk, and only risk. To survive in the market, accepting stop-loss with discipline and without hesitation. There is no other way to protect you capital. Any stock I share is either already part of my existing holding or I take a fresh entry at the same level I mention. I always place the stop-loss in my system at the time of buying, and I give the highest importance to stop-loss more than the target. Once the target is achieved, I usually book profit once and then wait for either a retest or a fresh breakout. I buy only on breakouts, never on supports. I also do not sell at resistance levels. That is simply my trading style.
NSE:TMPVLong
by ProfitLossMereSath
GRAPHITE INDIA – Inverse H&S | Pre-emptive Breakout SetupGRAPHITE INDIA – Inverse H&S | Pre-emptive Breakout Setup 🔄 Graphite India Limited 📌 Trade / Swing Setup • CMP: ₹604 • SL: ₹490 • Target: ₹903 📍 Technical Structure & Logic • Inverse Head & Shoulder pattern forming • Months of consolidation → energy build-up • Strong base at ₹512 holding for many weeks • 61.8% Fibonacci resistance ~₹600 acting as supply • Sustained move above ₹600–610 can trigger fresh upside momentum 📊 What this suggests • Selling pressure absorbed at lower levels • Buyers gradually taking control • Pre-emptive entry possible; confirmation on follow-through 🧠 Approach (Optimistic, not hype): • Fundamentals are bottoming, not booming — this is where smart money positions early • Price usually moves first, numbers follow later • Risk is defined, upside is open • Patience + correct position sizing is key ⚠️ Clarification: This is an independent analysis based purely on technical and market study. No part of Religare is involved in this view or recommendation. 📝 Important: I am not responsible for any loss or profit incurred. I am not taking any fees — sharing for educational purposes only. 📉 Disclaimer: Not SEBI-registered. Please do your own research or consult a financial advisor before taking any investment decision.
NSE:GRAPHITELong
by satyam15
TATA MOTORS (Passenger Vehicles) – Inverse H&S BreakoutTATA MOTORS (Passenger Vehicles) – Inverse H&S Breakout 🔄 📌 Swing Setup • CMP: ₹365 • SL: ₹353 • Targets: ₹380 → ₹390 📍 Structure & Logic • After a sharp fall, stock is showing reversal signs • Inverse Head & Shoulder on daily chart • Scope for a gap-fill rally if momentum sustains 🧠 Approach: Short-term swing only. Control position sizing and avoid over-leverage. ⚠️ Clarification: Independent technical view. No part of Religare involved. 📉 Disclaimer: Not SEBI-registered. Do your own research before taking any investment decision.
NSE:TMPVLong
by satyam15
Inverse Head & Shoulders on JSL A textbook bullish reversal pattern is forming on Jindal Stainless. After a prolonged downtrend, the stock has carved out a deep Head between two higher Shoulders, with a clean neckline now in sight. Weekly RSI is strengthening, and price action shows signs of accumulation. A breakout above the neckline with volume could signal trend reversal and fresh upside. Watch for sustained close above neckline + volume confirmation Pattern targets can be projected from neckline to head depth. Jindal Stainless Ltd., incorporated in the year 1980, is a Small Cap company (having a market cap of Rs 68,921.48 Crore) operating in Metals - Ferrous sector. Jindal Stainless Ltd. key Products/Revenue Segments include Steel, Sale of services, Job Work, Other Operating Revenue and Export Incentives for the year ending 31-Mar-2025. For the quarter ended 30-09-2025, the company has reported a Consolidated Total Income of Rs 10,982.46 Crore, up 6.87 % from last quarter Total Income of Rs 10,276.01 Crore and up 11.79 % from last year same quarter Total Income of Rs 9,823.88 Crore. Company has reported net profit after tax of Rs 821.71 Crore in latest quarter. The company’s top management includes Mrs.Savitri Devi Jindal, Mr.Ratan Jindal, Mr.Abhyuday Jindal, Mr.Tarun Kumar Khulbe, Mr.Jagmohan Sood, Dr.Aarti Gupta, Mr.Ajay Mankotia, Mrs.Arti Luniya, Mr.Jayaram Easwaran, Dr.Rajeev Uberoi, Mrs.Shruti Shrivastava, Mr.Navneet Raghuvanshi. Company has Walker Chandiok & Co. LLP as its auditors. As on 30-09-2025, the company has a total of 82.44 Crore shares outstanding.
NSE:JSLLong
by TechnicalAnalystSucrit