On a chart, how do I spot a Head and Shoulders pattern? A "left shoulder," a "head," and then a "right shoulder" form a pattern with a baseline and three peaks, the middle peak being the tallest. Price drops, followed by a bottom, and then an upswing, characterise the left shoulder.
After the peak of the right shoulder, we look for price action to move lower than the neckline in a head and shoulders pattern. After the right shoulder has developed, we wait for price movement over the neckline for the inverse head and shoulders. When the pattern is complete, a trade can be started.
On long-term charts, such as daily or weekly bars, the head and shoulders pattern is particularly effective. This is because you can use this pattern to spot a major trend shift.
The head-and-shoulders pattern is invalidated if the right shoulder is formed and then broken before the neckline breaks. As a result, the stop-loss order in the example above is positioned just below the right shoulder.
The Head and Shoulders pattern on the chart is one of the most dependable indicators of a market trend shift from bullish to negative. The Target is determined by taking a vertical measurement from the chart's highest point to the Neckline. On either side, the neckline is drawn through the troughs.
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md arman
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i watch this 4,5 times but really i don't understand the topic.
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Parshuram Bagade
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Very nice explaination about stock market
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Subham Kumar sahu
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Option trading course
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Prasoon Dixit
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As we know in fundamental basics we need to follow the two approaches 1 top-down approach 2nd Bottom-up approach.Kindly give some examples of bottom-up approach and top-down approach,(Discussion box?)
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Dinesh Kumar
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yash sir options video ke liye intezaar rahega
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Hemant Saini
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SIR optional treading ke ek proper video lavo ,us m pura smjavo na , Plese SIR .
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Rahul Kumar Sharma
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Nice course 👍👍
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Akash sarkar
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Nice course
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suraj vinay das
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sir fundamental analysis and technical analysis thoda aur earsy language me samjhaa dijiye please.
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