nalinakshi

expect sbin to touch 256 . Head and shoulder top

BSE:SBIN   STATE BANK OF INDIA
Head and shoulders top.

Head and Shoulders Top
Head and Shoulders formation consists of a left shoulder, a head, and a right shoulder and a line drawn as the neckline. The left shoulder is formed at the end of an extensive move during which volume is noticeably high. After the peak of the left shoulder is formed, there is a subsequent reaction and prices slide down to a certain extent which generally occurs on low volume . The prices rally up to form the head with normal or heavy volume and subsequent reaction downward is accompanied with lesser volume . The right shoulder is formed when prices move up again but remain below the central peak called the Head and fall down nearly equal to the first valley between the left shoulder and the head or at least below the peak of the left shoulder. Volume is lesser in the right shoulder formation compared to the left shoulder and the head formation. A neckline is drawn across the bottoms of the left shoulder, the head and the right shoulder. When prices break through this neckline and keep on falling after forming the right shoulder, it is the ultimate confirmation of the completion of the Head and Shoulders Top formation. It is quite possible that prices pull back to touch the neckline before continuing their declining trend

Usage as a tool.
Head and Shoulders is an extremely useful tool after its confirmation to estimate and measure the minimum probable extent of the subsequent move from the neckline. To find the distance of subsequent move, measure the vertical distance from the peak of the head to the neckline. Then measure this same distance down from the neckline beginning at the point where prices penetrate the neckline after the completion of the right shoulder. This gives the minimum objective of how far prices can decline after the completion of this top formation.

If the price advance preceding the Head and Shoulders top is not long, the subsequent price fall after its completion may be small as well.

Trade active: Usage as a tool
Head and Shoulders is an extremely useful tool after its confirmation to estimate and measure the minimum probable extent of the subsequent move from the neckline. To find the distance of subsequent move, measure the vertical distance from the peak of the head to the neckline. Then measure this same distance down from the neckline beginning at the point where prices penetrate the neckline after the completion of the right shoulder. This gives the minimum objective of how far prices can decline after the completion of this top formation.

If the price advance preceding the Head and Shoulders top is not long, the subsequent price fall after its completion may be small as well.
Comment:

little short of head and shoulder pattern top price has reached aroung 258.6
price action suggests look for sbin price revival as anticipated, This week all global economic kevents are lined up and no changes are expected, so one can ride the upmove with the stoploss of todays low
nalinakshi nalinakshi
@nalinakshi, what to do when price lktrades near this 256 to 257 level, it appears to be the key support level, if it holds, can see head and shoulder bottom,, interesting thing lwhile falling on 15 minutes chart forms head and shoulder top, after reaching this level if it forms H&S bootom, while going down, so watchout for this price as it is key support level . Bounce cannot be ruled out after touching twice once on 19th of previous month and now positive divergence is s also seen on macd,
Reply
EN English (IN)
EN English
EN English (UK)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out