The Head and Shoulders pattern is an accurate reversal pattern that can be used to enter a bearish position after a bullish trend. It consists of 3 tops with a higher high in the middle, called the head. The line connecting the 2 valleys is the neckline. The height of the last top can be higher than the first, but not higher than the head. In other words, the price tried to make a higher high, but failed. The closer the 2 outer tops are to the same price, the more accurate the pattern.
If the price breaks the neckline and closes below it, the pattern has completed. Conservative traders may look for additional confirmation. The target can be estimated by measuring the height of the pattern (from the neckline to the head) and projecting this downwards. Common stop levels are above the neckline or above the right shoulder. The Inverse Head and Shoulders is the bullish version of this pattern that can form after a downtrend. TradingView has a smart drawing tool that allows users to visually identify this pattern on a chart.
previous post-
any dip is a buy we shall soon see nifty hitting 12400 level(trend line which connects previous 2 highs)
very soon we shall see earnings in result which shall fuel the up move.
when a h&s pattern fails
target is double the height of shoulder (right)
previous post-
any dip is a buy we shall soon see nifty hitting 12400 level(trend line which connects previous 2 highs)
very soon we shall see earnings in result which shall fuel the up move.
when a h&s pattern fails
target is double the height of shoulder (right)
I have observed inverted Head and Shoulder pattern in BEML. In weekly chart, SMA cross over of 20 and 50 periods is about to happens. Once the crossover happens, we might see a swift uptrend in BEML stock.
Expecting a few days of downtrend correction atleast once:
1. Weekly Chart shows heads and shoulder ending shoulder forming.
2. Fibonacci shows it touched .786
The pair has formed a classic inverse head and shoulder formation in the hourly chart.
It broke the neckline and is currently consolidating just above it.
Hence we expect the apir to move to the resistance at 0.71205.
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