The head and shoulders reversal pattern
On the chart, we see a classic figure of technical analysis. At point A uptrend is proceeding as expected with no sign of the top.
1) In zone 1 - volume expands on the price move into new high.
2) At the point C the volume of trade is greatly reduced - zone 2.
3) A decline at the point D approacheds the previous reaction low - volume of trade - zone 3.
4) At the point E - volume of trade is greatly reduced again.
5) Zone 5 - The deciding factor in the resolution of the head and shoulders top is the decisive closing volation of the neckline.
6) Zone 6 - A return move back to neckline (point G) followed new low
1) In zone 1 - volume expands on the price move into new high.
2) At the point C the volume of trade is greatly reduced - zone 2.
3) A decline at the point D approacheds the previous reaction low - volume of trade - zone 3.
4) At the point E - volume of trade is greatly reduced again.
5) Zone 5 - The deciding factor in the resolution of the head and shoulders top is the decisive closing volation of the neckline.
6) Zone 6 - A return move back to neckline (point G) followed new low
Note
SHORTNote
Theoretical signal almost worked
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Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.