SIS
The Head and Shoulders Bottom pattern emerges after three consecutive price declines, occurring after a significant downtrend. The pattern consists of three distinct parts: the lowest low in the middle (referred to as the head) and two higher lows on either side (referred to as the shoulders) that are approximately at the same level.
During the formation of this pattern, the trading volume is generally highest when the price experiences the first two declines. As the pattern progresses, the volume tends to diminish during the formation of the right shoulder.
The confirmation of the reversal comes when the price closes above the neckline, which is drawn between the two highs formed by the shoulders. This breakout above the neckline is accompanied by a surge in trading volume, signifying a confirmation of the reversal and suggesting that the price is likely to continue its upward movement.
Note for everyone who came across this reference:
The Head and Shoulders Bottom pattern emerges after three consecutive price declines, occurring after a significant downtrend. The pattern consists of three distinct parts: the lowest low in the middle (referred to as the head) and two higher lows on either side (referred to as the shoulders) that are approximately at the same level.
During the formation of this pattern, the trading volume is generally highest when the price experiences the first two declines. As the pattern progresses, the volume tends to diminish during the formation of the right shoulder.
The confirmation of the reversal comes when the price closes above the neckline, which is drawn between the two highs formed by the shoulders. This breakout above the neckline is accompanied by a surge in trading volume, signifying a confirmation of the reversal and suggesting that the price is likely to continue its upward movement.
Note for everyone who came across this reference:
- This chart analysis is only for reference purpose.
- This is not buying or selling recommendations.
- I am not SEBI registered.
- Please consult your financial advisor before taking any trade.
Trade closed: target reached:
Educational target closed on 27th July 2023.