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Head_and_shoulder

Gold (XAU/USD) – Head & Shoulders Pattern Analysis**📈 Gold (XAU/USD) – Head & Shoulders Pattern Analysis** This chart represents the **Gold Spot (XAU/USD) 1-hour timeframe** and shows a potential **Head and Shoulders (H&S) pattern**, which is a bearish reversal signal. Let's break it down: **🛠 Key Elements of the Chart:** 1. **📉 Head & Shoulders Formation (Bearish Sign)** - **Left Shoulder**: Price makes a peak, then retraces. - **Head (ATH – All-Time High at ~$3,005)**: The highest point before pulling back. - **Right Shoulder**: Another peak, lower than the head, indicating weakness. - **Neckline (Support Zone)**: Marked in red. A breakdown below this level confirms the pattern. 2. **📊 Exponential Moving Averages (EMA)** - **EMA50 (Black Line)**: Indicates medium-term trend support. - Price is testing this moving average, which acts as a dynamic support level. 3. **🔴 Resistance & Support Zones** - **Resistance (Green Box near ATH)**: Selling pressure is strong at these levels. - **Support (Red Zones)**: Price could test these areas if the H&S pattern plays out. 4. **📉 Bearish Projection (Blue Arrow)** - If price **breaks below the neckline (~$2,974)**, it could drop to the next major support at **$2,940–$2,920**. 5. **📈 Bullish Scenario (Gray Arrow)** - If price **rebounds from EMA50 and the support zone**, it could attempt another rally towards **$3,005 and beyond**. ### **📌 Trading Implications:** ✅ **Bearish Breakdown:** - Sell below **$2,974** with targets at **$2,950–$2,920**. - Confirmation comes from increased volume on breakdown. ✅ **Bullish Reversal:** - If price holds above EMA50 and **breaks $2,990**, it could **retest ATH at $3,005+**. - Strong buying interest could push gold to **$3,020–$3,050** in a risk-off environment. ### **🔎 Conclusion:** 📊 **Gold is at a critical level**—watch for a **breakout or breakdown** confirmation. A confirmed **H&S breakdown** could signal a retracement, while a **bounce above EMA50** keeps the **bullish trend intact**. 🚀💰 #XAUUSD
FOREXCOM:XAUUSDShort
by elitetrader9090
This Pattern Could Return Ripple (XRP) Where It Started Rally Textbook, beautiful symmetric Head & Shoulders reversal pattern emerged on Ripple approaching the Neckline. Head is the highest peak among three on the chart Neckline is built through valleys of the Head. Price already tested Neckline support and was rejected yesterday. Bearish trigger is on the clear breakdown. Target is located at 0.55 It was calculated by subtracting the height of the Head from the Neckline. It is the support area where XRP started its rally before. "What goes up should come down"
Education
by aibek
4
The Head and Shoulders Pattern: How to TradeHello, Traders! Have you ever noticed price action forming three peaks, with the middle one standing taller than the others? If so, you’ve spotted the head and shoulders pattern, one of technical analysis's most well-known and reliable reversal patterns. Whether you’re trading stocks, forex, or crypto, the head and shoulders chart pattern can provide high-probability setups for both bullish and bearish trades. But is the pattern of the head and shoulders bullish or bearish? The answer depends on its structure. Let’s dive into what a head and shoulders pattern is, how to identify it, and how to trade both the classic and inverse head and shoulders patterns effectively. What Is a Head and Shoulders Pattern? The head and shoulders trading pattern is a reversal formation that signals a shift in trend direction. It consists of three peaks: Left Shoulder – A price rise, followed by a temporary decline. Head – A higher peak, followed by another drop. Right Shoulder – A lower peak that struggles to reach the height of the head, signaling weakness in the trend. Neckline – A support level connecting the lows of the left shoulder and the right shoulder. The breakout below this level confirms the reversal. The head and shoulders stock pattern typically appears at the top of an uptrend, indicating a potential trend reversal to the downside. Is the Head and Shoulders Pattern Bullish or Bearish? The classic head and shoulders pattern is bearish, which usually signals that buyers are losing strength and sellers are taking control. Traders use it to identify potential downtrends and short-selling opportunities. However, the reverse head and shoulders pattern, also known as the inverted head and shoulders pattern, is bullish and might signal the start of an uptrend. The head and shoulders candlestick pattern is considered to be most effective when combined with volume analysis—high selling volume at the neckline is thought to confirm the breakdown. Head and Shoulders vs. Other Reversal Patterns The head and shoulders chart pattern is one of the most reliable reversal formations, but how does it compare to others? Head and Shoulders vs. Double Top – The head and shoulders pattern includes three peaks, while a double top has only two. Head and Shoulders vs. Triangle – Triangles are continuation patterns, while the head and shoulders candle pattern signals reversal. Final Thoughts: Why the Head and Shoulders Pattern Matters The head and shoulders trading pattern is considered to be powerful for identifying trend reversals. Whether you’re trading a head and shoulders, a pattern bullish setup with an inverted head and shoulders pattern, or a bearish reversal with the classic formation, mastering this strategy can improve your trading accuracy. So, traders, have you used the head and shoulders chart pattern in your strategy? What’s your success rate with it? Let’s discuss it!
WHITEBIT:BTCUSD
by WhiteBIT
GOLD Daily, H4, H1 Forecasts, Technical Analysis & Trading IdeasDaily Timeframe: TVC:GOLD has been rising rapidly recently but has almost stopped since February 11, when it hit its uptrend channel line. With the RSI hitting resistance at 77 and showing signs of falling, there is a high probability that a corrective wave is about to begin. Four-hour Timeframe: A rising wedge pattern has formed in the price. As long as the price does not break the resistance at 2955 and the red line of the rising wedge continues upwards, a downward wave is expected to begin. A strong bearish divergence has also formed in the RSI. One-hour Timeframe: A head and shoulders pattern is forming. If the price can break the neckline downward and the blue trend line of the rising wedge is also broken, the probability of a downward wave will be very high.
FX:XAUUSDShort
by Navid_Jafarian
12
Head & shoulders pattern: a bearish reversal setupThe Head & Shoulders pattern is a classic bearish reversal formation that signals a potential trend change from bullish to bearish. It consists of three peaks: Left Shoulder: A rise followed by a decline. Head: A higher peak forming the highest point of the pattern. Right Shoulder: A lower peak, similar in height to the left shoulder. Neckline: A support level connecting the lows of both shoulders. Trading Strategy 1️⃣ Confirmation: A valid pattern forms when the price breaks below the neckline, confirming a potential downtrend. 2️⃣ Entry Point: Traders typically enter a short position when the price closes below the neckline. 3️⃣ Target: The expected price drop is approximately equal to the distance from the head to the neckline. 4️⃣ Stop Loss: Placed above the right shoulder to manage risk. This pattern, seen in the NASDAQ 100 Futures (4H timeframe), highlights a strong reversal, leading to a significant downtrend after the neckline was broken. Do you trade the Head & Shoulders pattern? Let’s discuss in the comments!
CME_MINI:NQ1!
by SmartSignalss
GBPCHF - Head and Shoulders SetupHello traders, On the daily timeframe GBPCHF has been consolidating in a range. Now it is at the resistance level of the range and so we should be looking for shorting opportunities. On the lower timeframes, the 4H and 2H, it has formed a head and shoulders pattern which is a great reversal pattern. Add to this the RSI divergence which in many occasions foreshadows the change in trend. I will be entering when we get a close below the neckline on the 2H timeframe.
Short
by The_Worldy
LINK's bearish movement!BINANCE:LINKUSDT LINK is crafting a Head and shoulder pattern which is of course a bearish pattern! The right shoulder is yet to come but when it happens, and the support line is lost, we shall see the price decrease massively! expected targets: 14.07 12.82 Last target and also a hard support: 10.11 Note that the price will NOT decrease unless the support line is lost! For now It shall ascend once again! ⚠️ Disclaimer: This is not financial advice. Always manage your risks and trade responsibly. 👉 Follow me for daily updates, 💬 Comment and like to share your thoughts, 📌 And check the link in my bio for even more resources! Let’s navigate the markets together—join the journey today! 💹✨
Short
by CRYPTONIC_trend
Decoding German DAX: Crucial Levels and Emerging PatternsFX:GER30 Current Market Overview Explore the latest insights into the German DAX index with a focus on pivotal support, resistance levels, and potential trading patterns. Support and Resistance Levels Support at €21,105: This level acts as a critical neckline for a potential Head and Shoulders pattern formation. We should watch closely for any breaks below this level, as it could signal further downside movement. Resistance at €21,557: A new resistance level has formed close to the 61.8% Fibonacci retracement level. This resistance may contribute to forming the right shoulder of a reversal pattern. Potential Head and Shoulders Pattern The Head and Shoulders pattern is a key technical formation to watch for: Formation Details: If the DAX breaks below the neckline/support at €21,105, it could confirm the formation of a Head and Shoulders pattern. Target Projection: A break below the neckline suggests a potential downside target around €20,452. This level aligns with the weekly fractal resistance previously breached at €20,529, which could act as support. Happy Trading, André Cardoso
FX:GER30
by Andre_Cardoso
5
XRP - Time to buy again!As I mentioned in the previous analysis, the price can form a head and shoulders pattern. If that is happen, expect a significant price increase. previuos analysis Give me some energy !! ✨We spend hours finding potential opportunities and writing useful ideas, we would be happy if you support us. Best regards CobraVanguard.💚 _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ✅Thank you, and for more ideas, hit ❤️Like❤️ and 🌟Follow🌟! ⚠️Things can change... The markets are always changing and even with all these signals, the market changes tend to be strong and fast!!
Long
by CobraVanguard
1
TAO What will happen in the short term ?The price might form a head and shoulders pattern, and after the breakout, it could reach 580. Give me some energy !! ✨We spend hours finding potential opportunities and writing useful ideas, we would be happy if you support us. Best regards CobraVanguard.💚 _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ✅Thank you, and for more ideas, hit ❤️Like❤️ and 🌟Follow🌟! ⚠️Things can change... The markets are always changing and even with all these signals, the market changes tend to be strong and fast!!
Long
by CobraVanguard
6
Update: GBP/JPY +50 Pips Congratulations If U Entered Update: the price moved exactly as i mentioned before. It broke the neckline, retested it and moved +50 Pips. Congratulations all if u entered with me. We have a very clear head and shoulders pattern here and also the price closed below neckline , so we can wait the price to go back to retest neckline and give us a bearish price action and then we can enter a sell trade . This Is An Educational + Analytic Content That Will Teach Why And How To Enter A Trade Make Sure You Watch The Price Action Closely In Each Analysis As This Is A Very Important Part Of Our Method Disclaimer : This Analysis Can Change At Anytime Without Notice And It Is Only For The Purpose Of Assisting Traders To Make Independent Investments Decisions.
Short
by FX_Elite_Club
ETH Forms Large Head & Shoulders Bottom, Might Break $4,000 SoonCRYPTOCAP:ETH has completed the right shoulder of a large head-and-shoulders bottom pattern, with the drop almost identical to the left shoulder. Zooming in, #ETH is currently testing the ascending trendline (marked in pink) that started on 11/14. In the coming days, watch if it can hold above this line. If it holds, the price could quickly surge past $4,000. A key level to watch is around $3,331, which is the bottom of the candlestick with the highest recent trading volume. Although it seems less likely right now, if this level breaks, it's possible that major players might intentionally push the price below the large triangle convergence bottom (marked in yellow) formed since June 2022, further shaking market confidence. (From August to November last year, there was a similar intentional move, where the price was suppressed along the triangle's lower edge for three months, creating multiple bottoms before a strong rally.) Follow me for more future price action scripts for different coins!
Long
by Harold_123
Head and Shoulders pattern on the 4-H, for DXY US Dollar IndexTVC:DXY This chart shows a clear Head and Shoulders pattern on the 4-hour time frame for DXY (US Dollar Index), which is a bearish reversal pattern. Here's a short analysis: Key Levels: The neckline is at approximately 108.000, acting as a crucial support zone. A breakdown below the neckline would signal further bearish momentum. Pattern Confirmation: Wait for a breakout below the neckline, followed by a possible retest, to confirm the pattern. Bearish Target: The measured move from the head to the neckline can be projected downward, aligning with the next key support levels around 107.000–106.500. Invalidation Zone: If price breaks above the right shoulder high (around 108.800–109.000), the bearish scenario could be invalidated. Would you like to explore specific trade setups based on this pattern? Here’s how you can structure trade setups based on the Head and Shoulders pattern visible in the chart: 1. Bearish Setup (Breakout Strategy) Entry: Enter a short position after a confirmed breakout below the neckline (108.000). Wait for a strong bearish candle close below this level. Stop Loss: Place the stop loss above the right shoulder high at 108.800–109.000, depending on your risk tolerance. Take Profit Targets: 1st target: 107.500 (psychological level and near-term support). 2nd target: 107.000 (projected move based on pattern). 3rd target: 106.500 (long-term support zone).
TVC:DXYShort
by TRADE_CENTER_1