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Head and Shoulders

SMH - Flerting with 200MA and H&S The chart has formed a Head & Shoulders pattern following a double top, which needs to be invalidated to avoid further downside pressure. That’s what the bulls are attempting to achieve, but the question remains: will they succeed? Additionally, we are frequently testing the 200MA, a key long-term support level. From a macroeconomic perspective, a recession seems likely, and in such a scenario, maintaining bullish momentum would be difficult. In my view, we’ve now entered the bearish phase of the market, even for semiconductors.
NASDAQ:SMHShort
by PedroNegreiros
AU Bears "Head" Down to Target .6570Here I have AUD/USD on the Daily Chart! From Friday's High @ .67672 to its Low @ .66597, we can see we get the Confirmation of a strong reversal pattern with the Break of the Neckline of the Head & Shoulders! Now what I'd like to see off the same High and Low of Friday is Price give us a 38.2% Retracement of the Low & Pullback to test the Neckline for potential Sell Entries. ( .67008 - .6697 ) Swing High of Head to Neckline = 126.9 Pips Neckline - 126.9 = .6570 (Target) Fundamentals: AUD's undoing comes from a mix of a rise in Unemployment to 4.2% and Retail Sales ending August coming in @ 0% With the horrible run of jobs reports for the USD to start September, it managed to recover to end the week and give the idea that a 50 bps Rate Cut is less likely sitting at a 30% change and a 25 bps Rate Cut more likely at a 70% chance at the Sept 18th meeting. -RBA Interest Rate sits @ 4.35% -Fed Interest Rate sits @ 5.5% This upcoming week will be VERY news heavy for USD seeing as there is: -Core CPI, CPI m & y on Wednesday, Sept. 11th -Core PPI/ PPI m/m & Unemployment Claims on Thursday, Sept 12th!
Short
by Novi_Fibonacci
AUDUSD ShortsMarket structure bearish on HTFs Entry at Weekly and Daily AOi Weekly Rejection at AOi Daily Rejection At AOi Daily Gave a beautiful Head and should pattern, looking to take advantage of the retest of the Neckline Previous Daily Structure Point Around Psychological Level 0.67000 H4 Candlestick rejection Levels 5.64 Entry 85% REMEMBER : Trading is a Game Of Probability : Manage Your Risk : Be Patient : Every Moment Is Unique : Rinse, Wash, Repeat! : Christ is King
Short
by mobbie_zw
2
Negative signals on Microsoft as AI plumet on the wayWe identify a negative shoulder-head-shoulder formation which at it's end touches the 200 day line, all ahead of today's news that the chip maker's market is plumeting. Additional put/sell signals are triggered when the trend lines confirm or the price won't come back over 200D. Microsoft is renown for its involvement in AI products, especially in OpenAI. The demand for chips halted when NVIDIA recently postponed the release of Blackwell, the next generation of AI-propelling chips. Data centers equipping for future demands on AI business withhold investments as they won't run with the current generation of chips for the short period of time until Blackwell is launching, but with the latest generation and cutting-edge technology for the maximum time possible. Meanwhile the think tank and advisor to U.S. Military and Government, RAND Corporation , surveyed why AI projects in the industry fail: Miscommunication or misunderstanding what problems need to be solved using AI, following a false perception of what AI can actually do - beginning with the impression the term "AI" makes to non-tech persons. Organizations lack the necessary data to adequately train effective AI models. The necessary amount of data might never be acquired due to diverse obstacles on collecting them. Organizations focus more on using the latest and greatest technology than on solving real problems for their intended users. Therefore, the circle of problems where AI solutions are applicable, might not be as big as initially thought. This is what happened to the blockchain. Organizations might not have adequate infrastructure to manage their data and deploy completed AI models, which increases the likelihood of project failure. Infrastructure for serious AI is exhaustive and needs up to 300-times bigger databases and hardware equipment than for regular software services. Then again, you have to feed it all with the required amount of data, of which, as pointed out earlier, is not enough there. AI projects fail because the technology is applied to problems that are too difficult for AI to solve. This is a general problem on the current generation of AI, as it lacks the required spark of creativity to originate ideas which are not based on patterns earlier learned. In other terms, generative, LLM-based AI, which is the current generation, would never be able to be a pioneer in anything, because it remixes mash-ups from earlier experience, at best! The current dips of chip makers, combined with the problems of sourcing sufficient data and industry becoming more and more disenchanted with AI, might trigger another tech bubble burst, which, if it happens, would be imminent right now.
NASDAQ:MSFTShort
by Johnny_TV
USD/CAD trend suggests higher pricesUSDCAD is forming a mini inverse head and shoulders pattern that has developed over the last three days. A break above 135.80 could push the price up to 136.02. The short-term trend remains bullish as long as the price stays above 135.45. This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Long
by ThinkMarkets
USD/JPY inverse H&S pattern suggest 200 pips upsideThe USD/JPY pair has been forming an inverse head and shoulders pattern over the past five days. This bullish reversal pattern suggests a potential shift in the trend. The difference between the head and the neckline is approximately 208 pips. A break above 143.77, which is just above the high from Monday, September 9th, could trigger this pattern. If confirmed, it could push the price up to around 145.88, as the height of the pattern suggests this potential target. This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
by ThinkMarkets
All About the Head & Shoulders Pattern(Beginner-Friendly) Part.2Hello, everyone. Today, I’m excited to share the second part of my educational series on chart patterns. In this post, we’ll be focusing on the 'Head and Shoulders' and 'Inverse Head and Shoulders' patterns. For those who missed the first part, you can catch up here: ↓↓↓ As always, I’ve kept the explanations simple and beginner-friendly. I hope this guide provides you with valuable insights! Here’s today’s outline: ———— ✔️ Outline 1. What is the Head and Shoulders pattern? Definition Key components Characteristics 2. Head and Shoulders Basic features Examples 3. Inverse Head and Shoulders Basic features Examples ———— 1. What is the "Head and Shoulders" pattern? 1) Definition The Head and Shoulders pattern is a well-established reversal formation that appears after an uptrend and signals the potential start of a downtrend. It indicates that buying pressure is weakening and selling pressure is gaining momentum. 2) Key components Left Shoulder: The initial peak, where the price rises and then pulls back. Head : The highest peak, situated between the two shoulders, representing the final bullish push. Right Shoulder: The third peak, which is typically lower than the head but similar to the left shoulder, signaling diminishing buying interest. Neckline: A key support line drawn across the lows of the left and right shoulders. A decisive break below this neckline confirms the reversal and the beginning of a downtrend. 3) Characteristics Reversal signal: The Head and Shoulders pattern marks a transition from an uptrend to a downtrend. Easy identification: The structure is visually distinctive, with three clear peaks. Neckline significance: A break below the neckline serves as a confirmation signal for the downtrend. Volume dynamics: Volume typically rises during the formation of the left shoulder and head, decreases during the right shoulder, and surges again when the neckline is breached. ———— 2. Head and Shoulders (Reversal from uptrend to downtrend) 1) Basic features End of an uptrend: The Head and Shoulders pattern forms at the end of a bullish phase, signaling a weakening in buying strength. Distinct peak heights: The head is always higher than the shoulders, which are generally symmetrical, though the right shoulder may sometimes be slightly lower, enhancing the pattern’s reliability. Neckline as a trigger: The neckline acts as a critical support level. A break below it confirms the pattern and signals the onset of a bearish trend. Volume confirmation: Volume increases during the left shoulder and head formations, weakens during the right shoulder, and spikes when the neckline is broken, confirming a potential sell-off. Price target: After the pattern completes, the expected price drop is typically equal to the distance between the head and the neckline, providing traders with a target. 2-1) Example 1 In this example, we see a fakeout at the right shoulder, followed by a sharp decline. After a brief retest of the neckline, the price broke through and continued its downtrend. 2-2) Example 2 In this chart, a fakeout occurred when the price dropped from the head and formed the neckline, misleading many market participants. After forming the right shoulder, the price successfully declined. There were two retests, which confirmed the reliability of the pattern. ———— 3. Reverse Head and Shoulders (Trend reversal from downtrend to uptrend) 1) Basic features End of a downtrend: The Inverse Head and Shoulders pattern typically forms at the end of a downtrend, signaling a potential reversal to the upside. Formation of lows: Like the standard Head and Shoulders, this pattern consists of three lows—left shoulder, head, and right shoulder—with the head being the lowest point. Neckline significance: The neckline is drawn across the highs of the left and right shoulders. A break above this line confirms the reversal and acts as a strong buy signal. Volume pattern: Volume tends to decrease during the formation of the pattern but surges when the neckline is broken, signaling strong buying momentum. Target setting: After the pattern is confirmed, the expected price rise is often equal to the distance from the head to the neckline, which helps traders set profit targets. 2-1) Example 1 After the Head and Shoulders pattern formed, the price broke above the neckline, successfully reversing the downtrend into an uptrend. A buy strategy would have yielded profits at the breakout point. 2-2) Example 2 In this example, a smaller Reverse Head and Shoulders pattern formed within the head of a larger pattern (see Example 3). After two successful retests, the price reversed into a strong uptrend. 2-3) Example 3 This example showcases the smaller Reverse Head and Shoulders pattern mentioned in Example 2, located within the head. After two successful retests, a buy strategy could have led to profits as the price reversed into an uptrend. ———— ✔️ Conclusion "Charts are the maps of the market." The Head and Shoulders and Reverse Head and Shoulders patterns we’ve covered in this post are key signals that frequently appear in the market. Charts aren’t random—they are visual representations of market psychology and investor behavior. As traders, our role is to interpret these maps, navigate the market, and make informed decisions. Investing is more than just buying and selling. Sometimes the market may move contrary to our expectations, while other times we seize opportunities and achieve success. Each experience is a chance to learn and grow. The more experience you gain, the more paths you’ll recognize on the chart. Success in this market requires persistence, patience, and continuous learning. Understanding and analyzing chart patterns like the ones discussed here is just the beginning. I hope this post has helped you gain a deeper understanding of the market and make more informed decisions. The market is always evolving, but within that evolution lies opportunity. The key is developing the ability to spot those opportunities. With knowledge, experience, and confidence, you’ll find greater success. Stay prepared, and always listen to what the market is telling you.
Education
by Killer_Whales
1
Alikze »» BTC | Ascending diamond pattern🔍 Technical analysis: Ascending diamond pattern - According to the latest analysis presented , Bitcoin made a correction based on the predicted path to the second green box area of ​​the $50,000 correction range. - In the recent modification, a double zigzag has been formed. The second zigzag is a flat correction. According to the formation of an ascending diamond pattern in the green box area, after the failure of the dynamic trigger, the diamond pattern will be confirmed and it can expect to climb up to the specified areas according to the previous analysis. 💎 Note: Also, if a failure occurs from the bottom of the template, this template is invalid and must be checked and updated again. »»»«««»»»«««»»»««« Please support this idea with a LIKE and COMMENT if you find it useful and Click "Follow" on our profile if you'd like these trade ideas delivered straight to your email in the future. Thanks for your continued support. Best Regards,❤️ Alikze. »»»«««»»»«««»»»««« BINANCE:BTCUSDT
Long
by alikze
2
Filecoin - Play the reversal Pattern. Start building longs. Filecoin may be forming a giant inverse head and shoulders/triple bottom. This is granted that we don't bust through the low 2.00ish area and get price discovery to the downside. I would be buying as low as the low 2.00 area, and as high as 5.00-6.40. Unfortunately, I don't think that this market cycle is going to be as strong as the others, so we may only see the measured move play out from the inverse head and shoulders. That would take us to key resistance at around $16.00. If we are very lucky, then we may get to attack the upper targets as we did last market cycle - that would be 36.00 as the next milestone after 16.00. Then 55-56.00, then 86-87.00, then 220-230.00 again if we get extremely lucky. The way that this market cycle is looking, I am personally not setting my expectations beyond 16.00 for Filecoin. I'd love for that to be proven wrong, trust me! As always, I appreciate the collaboration!
COINBASE:FILUSDLong
by LoneWolf1425
7