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Headshoulders

PYPL - could have bottomed outPYPL broke down from a messy Head & Shoulders formation of sorts (head-shoulder-head-shoulder) in Oct and had been trending down strongly since. It eventually came down to about 180 on 1st Dec last week, which incidentally was it's H&S target and also a possible horizontal support zone here. However we only see a decisive bounce off this level today, opening with a gap up, leading to the potential formation of a bullish engulfing candle on the weekly timeframe. With a confluence of factors (H&S target, horizontal suppport and potentially bullish engulfing on weekly), I am fairly optimistic that it could have bottomed out. I will venture a long today with initial stop stop slightly below $179. Will take partial profits around $225 (a gap fill) and protect remaining positions with trailing stops. Disclaimer: TA is about improving our odds of a successful trade (not a guarantee). This is just my own analysis and opinion for discussion and is not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Thank you. Do give me a thumbs up if you agree. Feel free to let me know what you think! :)
NASDAQ:PYPLLong
by Juliac
USDZAR big move incoming !Hello everyone, I hope you all doing well. I've been watching this pair for months now, it has respected technical price action very well so far, we had this huge heads and shoulders formation ( shown on chart ) in which we broke out yesterday successfully, I believe once we got here there is no going back. * This is not a financial advice, use the idea with your own strategy and risk management * I personally like this very much. check it out for yourself ;) I'm also writing about most of crypto currencies; Follow me on TRADINGview so you wouldnt miss out any updates. Like if you think this was helpful and let me know on the comment section below. * This is not a financial advice, use the idea with your own strategy and risk management *
Long
by Algo_Analyst
Head & Shoulders Pattern - Advanced AnalysisIn this series about chart patterns we previously discussed narrowing wedges patterns, explaining their identification rules, the measure rule associated with them, and various observations. In this post, we will cover head & shoulders, inverse head & shoulders, and their complex counterpart. We will cover their identification rules, measure rules, and share some observations regarding these unique yet popular patterns. The topics covered in this post are mostly based on the work of Bulkowski on chart patterns (1). 1. Head And Shoulders The head and shoulder pattern also referred to as Head-and-Shoulders Tops by Bulkowski, is a bearish reversal structure commonly found in uptrends, characterized by a series of three maxima with the center maxima higher than the other two. The first maxima is denoted as "Left Shoulder", the second maxima (the highest one in the formation) is denoted as "Head", and the third maxima is denoted as "Right Shoulder". The volume on a head and shoulders formation should be decreasing over time. Bulkwoski points out that symmetry can play an important role in the validity of an H&S pattern. 1: H&S = Left Shoulder < Head > Right Shoulder 2: Left Shoulder ≈ Right Shoulder The first and second maxima are followed by two minima, the line connecting these two-point form the "neckline". Price breaking the neckline downward is a bearish signal (note that a low volume breakout is not indicative of a potential failure). Ongoing H&S on PGAL daily, waiting for the price to reach the neckline. 2. Inverted Head And Shoulders The inverted head and shoulder pattern also referred to as Head-and-Shoulders Bottoms by Bulkowski, is a bullish reversal structure commonly found in downtrends, characterized by a series of three minima with the centre minima lower than the previous two. The first minima is denoted as "Left Shoulder", the second minima (the lowest one in the formation) is denoted as "Head", and the third minima is denoted as "Right Shoulder". Like with a regular H&S, the volume should be decreasing over time. We can see it's simply a regular H&S pattern, but inverted. 1: Inverted H&S = Left Shoulder > Head < Right Shoulder 2: Left Shoulder ≈ Right Shoulder The first and second minima are followed by two maxima, the line connecting these two-point form the "neckline". Price breaking the neckline upward is a bullish signal (note that a low volume breakout is not indicative of a potential failure). Inverted H&S on MTSI daily. 3. Complex Variations Bulkowski presents two complex variations to the H&S and inverted H&S patterns. These complex variations are similar to the regular ones but have the particularity of having multiple shoulders on each side or multiple heads. Inverted complex H&S on ARKW daily. 4. Measure Rule The measure rule for head and shoulders formations allows the determination for the level of taking profits and stop losses after a breakout of the neckline. In the case of a regular H&S, the take profit should be set at the breakout point minus the height between the formation head value and the neckline value where the head is located. The same applies to inverted H&S, the take profit should be set at the breakout point plus the height between the formation neckline value where the head is located and the formation head value. In the case of a complex dual-head H&S formation, the head value that should be selected is the lowest one. 5. Observations Head and shoulders formations can sometimes be encountered within diamonds formations. Osler identifies head-and-shoulders trading as a type of noise trading and points out that the immediate price effect of head-and-shoulders trades disappears slowly but completely over the subsequent two weeks (2). Caginalp and Balevonich found that head and shoulders patterns can be obtained as a consequence of a single group of investors with identical motivations and assessment of the value of the financial instrument (3). 7. References (1) Bulkowski, T. N. (2021). Encyclopedia of chart patterns. John Wiley & Sons. (2) Osler, C. (1998). Identifying Noise Traders: The Head-and-Shoulders Pattern in U.S. Equities. Federal Reserve Bank of New York Research Paper Series. (3) Caginalp, G., & Balevonich, D. (2003). A Theoretical Foundation for Technical Analysis. Capital Markets: Market Microstructure eJournal.
COINBASE:BTCUSDEducation
by LuxAlgo
10
XAGUSD, 4h analysis Hello everyone, this is my first idea which I'm sharing, its just my opinion and I'm not much of an expert here so don't rely on it much; less being said lets get into it. So I have pretty much labeled everything on chart, but to explain it more carefully I will write everything down. we have been in a long down trend which we broke out and price been rising since, by hitting the neckline resistance zone, we had this correction which can also be considered as pull back to breakout zone. as you can see there is a good support zone below the neckline which price showed reaction to and bounced off a little bit and stopped us from going further down. I believe the bigger uptrend is starting and we are about to see some rises in price in near future. if price continues to go up to retest the neckline, it will complete a heads and shoulders trend reversal pattern. with that being said, my tp zones will be : TP 1 : 23.45 TP 2 : 24.13 TP 3 : 24.58 Let me know what yall think in comment section below and good luck in your trades.
OANDA:XAGUSDLong
by Algo_Analyst
GBPJPY Heads&Shoulders [SHORT]FX:GBPJPY So Tntsunrise spotted this on 6 Aug and made a publication 'bout this earlier last month wich I'll add on the related ideas. The thing is, I've happened to see lot of times these goodbye kiss. Since one of the first patterns you learn are the Heads & Shoulders lots of the time now a days we see the pattern on the right shoulder and we tend to take it from there #nodisipline and take profit right on the neck. Well since more and more and more people keep doing that, a pattern has started to form. I call it The Goodbye Kiss (well lots of other person call it like that, I just happened to pick it up from a JPmorgan trader last year). The thing is sometimes that develop in a triangle pattern so one has to be careful, still is most certain that price will return to the neck and we can take advantage of that. Also from there might develop the Head & shoulder pattern like normally and go straight to hell... But also it can turn into a triangle wich is also easy to trade.
Short
by kjzsbtby
USDJPY - H&S Pattern at Top of Parallel ChannelHi Traders! The market is moving in a downtrending Channel. So, we here have many things which confluence to each other: Firstly, we have the descending Parallel Channel from the H4 Timeframe. As you can see, the market made a Trendline when it was moving upwards. The Break of the Trendline marks the end of the Retracement Move. The last time the market reached the upper Channel Line, it also made a Head & Shoulders Pattern. But why is the Head and Shoulders Pattern such valuable? What's the logic behind this Pattern? Here are some questions: When do we have a typical uptrend? - When we have higher Highs and higher Lows, great! What is an indication for the Trendchange? - A Break of structure When do we have a break of structure? - When the rule of higher Highs and higher Lows gets harmed And this is exactly what happens when we have a H&S Pattern: The head is the highest High. The right Shoulder represents the LOWER High. The kink between the H and the RS represents the Low. The Breakout of the Neckline (which is at the kink/Low) represents the lower Low. The Retest to of the Neckline represents the second lower High. And if we combine all that together, we have a market, which turned to a Downtrend after the Uptrend, having a lower High and a lower Low. Now the market is retesting the Break of Neckline. Thanks and successful Trading :-)!
Short
by swissmoneymakers
WAVESUSDT is creating an inverse head and shoulders 🦐WAVESUSDT is creating an inverse head and shoulders on the daily resistance. IF the price will have a breakout and confirm the neckline as new support, According to Plancton's strategy (check our Academy), we can set a nice order ––––– Follow the Shrimp 🦐 Keep in mind. 🟣 Purple structure -> Monthly structure. 🔴 Red structure -> Weekly structure. 🔵 Blue structure -> Daily structure. 🟡 Yellow structure -> 4h structure. ⚫️ Black structure -> <4h structure. Here is the Plancton0618 technical analysis, please comment below if you have any question. The ENTRY in the market will be taken only if the condition of the Plancton0618 strategy will trigger.
WLong
by InkyGrip
36
XRP head and shoulder formation - 0.56 $Hello traders, Here we see XRP on the 4 hour chart. with a now already confirmed head shoulder pattern. The neckline was re-tested and so the target for the H-S pattern is 0.56 USD. If BTC drops fast ALT coins are going to drop many times faster so place good stop. Going long in a downtrend gives a lot of risk but can also bring quick profits. Personally I prefer to go with the trend rather than trade against it. Exceptions are exceptional panic with a super high volume spike but to go long reliably requires confirmation and a structure.
Short
by PegasusTechCharts
11
SXPBTC is creating a massive Inverse head and shoulder 🦐The price is creating an inverse head and shoulder on a daily timeframe, and now the price is testing its neckline. IF the price will have a breakout and flip the current neckline into new support, According to Plancton's strategy (check our Academy), we can set a nice order ––––– Follow the Shrimp 🦐 Keep in mind. 🟣 Purple structure -> Monthly structure. 🔴 Red structure -> Weekly structure. 🔵 Blue structure -> Daily structure. 🟡 Yellow structure -> 4h structure. ⚫️ Black structure -> <4h structure. Here is the Plancton0618 technical analysis, please comment below if you have any question. The ENTRY in the market will be taken only if the condition of the Plancton0618 strategy will trigger.
Long
by InkyGrip
22