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Headandshouldersformation

#Head&Shoulder chart pattern in action Head and shoulder definition: A simple head and shoulders top formation is characterized by a peak representing the left shoulder, followed by a higher peak which is referred to as the head of the formation. A lower peak representing the right shoulder is found on the right‐hand side of the head. The head should be the highest peak in the formation. The neckline is a trendline that connects the troughs that lie on either side of the head. Necklines may be horizontal or inclined which in our case is inclined. In an inverted head and shoulders formation (also referred to as a head and shoulders bottom), the head is the lowest trough within the formation. Head and shoulder pattern completion: The head and shoulders formation is completed with a valid breakout of the neckline Until a valid penetration has occurred, the formation is regarded as merely tentative. But as you can see in our case the pattern is completed since we can see upside breakout of the chart pattern neckline. Head and shoulder pattern target: The minimum one‐to‐one price objective or target for a head and shoulders top formation is simply the vertical distance between the head and the neckline projected downward from the neckline breakout level. For an inverted head and shoulders formation, the vertical distance is projected upward from the neckline breakout level. You can see this vertical line in the chart. Head and shoulder pattern entry: ■■ Short at a break of the right shoulder’s uptrend line with a stop placed above the right shoulder or head (see Point 1 in Figure 13.9) ■■ Short at the peak of the right shoulder with a stop placed above the right shoulder or head, especially when there is a significant resistive confluence comprising of significant Fibonacci retracement levels, Floor Trader’s Pivot Point levels, and psychologically important price levels associated with double and triple zeros ■■ Short at the right shoulder when it is testing the left shoulder’s resistance level, with a stop placed above the resistance level or head ■■ Short on a valid penetration of the neckline with a stop placed above the neckline, right shoulder, or head (see Point 2 in Figure 13.9) ■■ Short on a retest of the neckline after a valid penetration with a stop placed above the neckline, right shoulder, or head (see Point 3 in Figure 13.9) ■■ Short on the penetration of the price associated with the trough created by the retest action, with a stop placed above the trough, neckline, right shoulder, or head (see Point 4 in Figure 13.9) i.postimg.cc Source: the handbook of technical analysis by Mark Andrew Lim
FX:JPYBASKETEducation
by mohemati
DAX Short - High Probability Current Macro Environment is very bearish: Inverted Yield Curve :> showing that Market Participants are forecasting that rates are being cut in the future Purchasing Manger Indexes are at contractionary levels - combined with the current situation in the money market - I do not expect that the real economy is going to relief from here Current Technical Analysis is very likely to turn: We are sitting at the golden pocket, range high and are currently forming an rounded top I am expecting an fakeout H&S with early shorts getting stopped Even if we have already formed an bottom - it is very unlikely that we go trough this level without an rejection I am expecting at minium that we are able to take at least 1 take profit until it might turn more to the upside
CAPITALCOM:DE40Short
by gissinginvestments
ERX Energy Play Head and Shoulders BearishOn the one hour chart, ERX ( triple energy ETF) completed a head and shoulders and is now downtrending with a crash through the EMA 100 and EMA 200 and now one standard deviation below the VWAP. The Momentum Indicator shows downside momentum is greater than it has been in recent months. The inverse ETF called the ERY would be expected to be the inverse of this. The XLE would be similar but not triple leveraged. This appears to be setup for a good long term swing short or a put option expiring in late January or February.
AMEX:ERXShort
by AwesomeAvani
Is Oil dying? I can't know if Oil is dying because I cannot see into the future. So what's on the chart? 1- There is a death cross on a daily timeframe which is always a significant event. 2 - The red stepwise line (the ATR) is telling us that there is heavy bear pressure in this market. 3 - Twice price was rejected in 31 days. 4 - Now there is a big struggle at a neckline. 5 - Price pushed outside the ascending wedge pattern, and has now fallen through the base. Not a good sign for bulls. Price can go up or down at the leading edge. True trend-followers would have held short once price is below the 1D ATR line. Nobody knows how far that may go. This is a dangerously volatile market on the daily, with no good short entry positions at this time. A better entry short would have been at price point 100 - and still under the switch in the ATR. But wow - look at the volatility one would have had to withstand over months. This is for strategists - not gamblers. Stay safe. Don't burn cash.
BLACKBULL:WTI
by Captain_Walker
2
XTZ - Potential Inverse Head&Shoulders!Hello TradingView Family / Fellow Traders. This is Richard, as known as theSignalyst. XTZ is sitting around a strong support zone and round number 1.0 so we will be looking for buy setups. XTZ is forming an inverse head and shoulders pattern but it is not ready to go yet. For the bulls to take over, we need a momentum candle close above the gray neckline. Meanwhile, until the buy is activated, XTZ would be overall bearish and can still trade lower. Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
by TheSignalyst
12
XAU/USD - 1H - Breakout SetupXAU/USD is in a bearish trend on 1H making LHs & LLs. Price is currently testing a falling resistance after recently forming a Head & Shoulders pattern. The price might break above the falling resistance and rise towards the Neckline or the Volume Profile POC. The Bullish Bias is based on the following confluence: Strong Support + 38% Fib Retracement Bullish divergence on RSI Price respecting 200 SMA OBV divergence with price (downtrend lacks conviction) Long bottom wicks and Bullish Engulfing candle on Support Volume Profile POC of previous trend A break above falling trendline might give control to bulls. There's also an opportunity to go short if the support breaks downside. Wait for confirmation before going in any direction. Trade safe. Hit like & follow for more analysis.
OANDA:XAUUSDLong
by yo_zubair
KBANK | Wave Analysis | Bearish Projection Diagonal 4-wavePrice action and chart pattern trading > A 2 conflicting pattern with a bearish move from the larger Head & Shoulders pattern and a bullish one with current bull pennant. > The larger HS pattern could be overshadowing the smaller pennant pushing the price lower - SMA20 dead crossed SMA50. > A strong symmetrical resistance; upper volume profile, price resistance, and SMA200. > This 4-wave diagonal projection is based on the unsuccessful breakout scenario with an upcoming C leg downtrend extension 0.786 - 1.0 approximately - 10 - 15% downside. > A bullish scenario is based on the successful breakout of bull pennant and SMA200 targeting the previous 3-wave high with a +20% upside. > Indicator: bearish MACD signal crossing below the signal and baseline Always trade with affordable risk and respect your stoploss!
SET:KBANK
by dukeposh
AAPL: A TOP sign? What's next on it?• Since our previous post, AAPL did everything it should do, as we expected, filling our last gap, and it hit our key resistance at $152 before doing a top sign yesterday (the link to my previous analysis is below this post, as usual); • Now, this might indicate a correction, and in this scenario, the Fibonacci’s Retracements are the next support levels to work with; • Although there’s no clear buy sign right now, any bullish reaction near a key support could be a buy opportunity, with a good Risk/Reward ratio; • It seems the only thing AAPL has to do in order to correct is to trigger the H&S chart pattern in the 1h chart; • In addition, the volume is low in the past couple of days, another weakness sign; • Therefore, I would pay close attention to the retracements from now on, especially if AAPL triggers a bearish pattern in the 1h chart, as there’s a good chance one of them will work as support next. Remember to follow me to keep in touch with my analyses!
NASDAQ:AAPL
by Nathan_The_Finance_Hydra
1
LINKUSDT 2nd Bear LegAfter a recovery rally that reaches the upper trendline of the descending triangle, the price action appears to be printing a Head and Shoulders formation, the right shoulder can be formed after a possible reaction from the green box area (local support), then the price can turn to react to volume POC Level @ USDT6.4 which is the same level as the low of the September 1M inside bar Candlestick pattern. The decreasing breakout of the ascending micro wedge has placed the Fisher Transform oscillator in a bearish crossover, which suggests a possible 2nd leg swing below the entry POC. The previous swing made an ABC retracement of 0.549, which AB=CD (0,548 ==> 1,825) reciprocal points to a harmonic target @USDT4.9, being TP2 previously speculated with a 14.6% Fibonacci retracement at the key level.
Short
by firmestudio
USDCAD Buy Opportunity- I am expecting some bullish pressure of the USD this week. - Price may may a final bearish push that may create a bearish reversal pattern, testing the below area of support - From there price will test the previous area of support which created the above head and shoulder (or triple top) before it broke below. -This move is just a retracement to test that area before possibly dropping lower. -Looking for price to test the 1.35 area. Please, like or comment your idea/analysis !
Long
by NoCeilingsTrading