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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Amir Tufail
5
So it's mean that Trends are 3 types : i) Bullish (ii) Barresh (iii) Siteway
And Traders are i) position trader (ii) Swing Trader (iii) Day trader (iv) Scalper Trader
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Bhimani Nirbhay
5
good l
M
Mohd Abdullah
4
Nice
A
Akash Kumar
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NA
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Bhupendra Yadav
5
Sir Its Very Ausome Course And Your Tecnic Is Very For Teaching
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Deepanshu Singh
5
Best Technical Analysis Course....
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md arman
5
i watch this 4,5 times but really i don't understand the topic.
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Parshuram Bagade
5
Very nice explaination about stock market
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Subham Kumar sahu
5
Option trading course
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Prasoon Dixit
5
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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