****Educational Post:
Head and Shoulder pattern
Head and shoulders is a chart pattern in which a large peak has a slightly smaller peak on either side of it. Traders look at head and shoulders patterns to predict a bullish-to-bearish reversal.
Typically, the first and third peak will be smaller than the second, but they will all fall back to the same level of support, otherwise known as the ‘neckline’. Once the third peak has fallen back to the level of support, it is likely that it will breakout into a bearish downtrend.
****Educational Post;
Bearish Flag
The bearish flag is a candlestick chart pattern that signals the extension of the downtrend once the temporary pause is finished. As a continuation pattern, the bear flag helps sellers to push the price action further lower.
These three elements are integral for the bearish flag to occur:
The flagpole - the asset’s price must trade lower in a series of the higher highs and higher lows;
Flag - a consolidation must take place between two parallel trend lines in an uptrend;
A breakout - a break of the supporting trend line signals the activation of the pattern.
Head and Shoulder pattern
Head and shoulders is a chart pattern in which a large peak has a slightly smaller peak on either side of it. Traders look at head and shoulders patterns to predict a bullish-to-bearish reversal.
Typically, the first and third peak will be smaller than the second, but they will all fall back to the same level of support, otherwise known as the ‘neckline’. Once the third peak has fallen back to the level of support, it is likely that it will breakout into a bearish downtrend.
****Educational Post;
Bearish Flag
The bearish flag is a candlestick chart pattern that signals the extension of the downtrend once the temporary pause is finished. As a continuation pattern, the bear flag helps sellers to push the price action further lower.
These three elements are integral for the bearish flag to occur:
The flagpole - the asset’s price must trade lower in a series of the higher highs and higher lows;
Flag - a consolidation must take place between two parallel trend lines in an uptrend;
A breakout - a break of the supporting trend line signals the activation of the pattern.