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Invertedheadandshoulders

How to Plot Head & Shoulders Pattern on TradingViewWelcome back, Traders! We’re excited to have you here on TradingView where we share valuable trading insights and educational posts to help you succeed in the markets. Today, we’re diving into one of the most reliable chart patterns in technical analysis: the Head and Shoulders pattern. Understanding and identifying this pattern can significantly improve your trading strategy, whether you’re dealing with forex, stocks, or commodities. What is the Head and Shoulders Pattern? The Head and Shoulders pattern is a bearish reversal pattern that indicates a potential end to an uptrend and the beginning of a downtrend. It consists of three peaks: Left Shoulder: The first peak followed by a decline. Head: The highest peak followed by a decline. Right Shoulder: A peak similar in height to the left shoulder, followed by a decline. The neckline is the support line that connects the lows after the left shoulder and the head. How to Trade the Head and Shoulders Pattern: Identify the Pattern: Look for the three distinct peaks with the head being the highest. Draw the Neckline: Connect the lows after the left shoulder and the head to form the neckline. Entry Point: Enter a short position when the price breaks below the neckline. Target: Measure the distance from the head to the neckline and subtract this distance from the breakout point to set your target. Stop Loss: Place a stop loss above the right shoulder to manage your risk. Inverse Head and Shoulders Pattern Conversely, the Inverse Head and Shoulders is a bullish reversal pattern signaling the end of a downtrend and the start of an uptrend. It consists of three troughs: Left Shoulder: The first trough followed by a rise. Head: The lowest trough followed by a rise. Right Shoulder: A trough similar in depth to the left shoulder, followed by a rise. The neckline is the resistance line connecting the highs after the left shoulder and the head. How to Trade the Inverse Head and Shoulders Pattern: Identify the Pattern: Look for the three distinct troughs with the head being the lowest. Draw the Neckline: Connect the highs after the left shoulder and the head to form the neckline. Entry Point: Enter a long position when the price breaks above the neckline. Target: Measure the distance from the head to the neckline and add this distance to the breakout point to set your target. Stop Loss: Place a stop loss below the right shoulder to manage your risk. Follow us on TradingView for more helpful ideas and educational posts! Stay tuned as we continue to share insights that will help you on your trading journey. Happy trading! - BK Trading Academy
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Education
by BKTradingAcademy
7
Gold -> The 90% Probability SetupHello Traders and Investors , my name is Philip and today I will provide a free and educational multi-timeframe technical analysis of Gold 💪 After the simpe monthly break and retest and also a retest of the 0.382 monthly fibonacci retracement Gold perfectly created the bullish continuation towards the upside and I do expect new all time highs on Gold in 2023. Gold is also retesting the weekly support trendline of the very obvious rising channel and in confluence with bullish moving averages I do expect a bullish push from here. Looking at the daily timeframe you can either be agressive and enter a position right now or you can wait for the confirmed inverted head and shoulders and a breakout of the daily bullflag and then this will be a very high probability setup overall. Keep in mind: Don't get caught up in short term moves and always look at the long term picture; building wealth is a marathon and not a quick sprint📈 Thank you for watching and I will see you tomorrow! My previous analysis of this asset:
FXOPEN:XAUUSDLong
by basictradingtv
46
NZDJPY I Inverted head and shoulder - LONGWelcome back! Let me know your thoughts in the comments! **NZDJPY Analysis - Listen to video! We recommend that you keep this pair on your watchlist and enter when the entry criteria of your strategy is met. 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!
Long
by BKTradingAcademy
16
EURCHF I SHORT until break of the resistance Welcome back! Let me know your thoughts in the comments! **EURCHF - Listen to video! We recommend that you keep this pair on your watchlist and enter when the entry criteria of your strategy is met. 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! Brian & Kenya Horton, BK Forex Academy
Short
by BKTradingAcademy
10
MHRIL Looks good for positional trade.Aim for 5-8%. It can be easily achievable in 1-3 days. My belief is to choose high winning probability trade with a risk-reward ratio going from 1:1 to 1:2. The reason for booking profit of only 5-8% is because the market direction is not sure at this point. So better to aim for 1:1 risk-reward and rotate your money in better opportunities. Take trade if all conditions meet at the end of the day 3:15-3:30 PM. If you have any questions or suggestions, please leave a comment below. I will personally reply to every single comment! If you enjoyed this analysis, I would definitely appreciate it, if you smash that like button and maybe consider following my channel.
NSE:MHRILLong
by Chartmaniac
GBPUSD Analysis - Inverted Head & Shoulder Welcome back! Here's an analysis of this pair! **GBPUSD - listen to video analysis. We recommend that you keep this pair on your watchlist and enter when the entry criteria of your strategy is met. 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! Brian & Kenya Horton, BK Forex Academy
Long
by BKTradingAcademy
2
BITCOIN - FALL TO $35K AND RISE TO $58K OR FALL TO $30K AND $20KRight here is my idea on Bitcoin. As we all know we have an head and shoulder pattern on this chart which predicts a fall and an inverse head and shoulder pattern on this same chart which predicts a bullish trend. So for the head and shoulder pattern to work, price will hit the yellow resistance line at $41,400-$42,00 and if it rejects, it will fall back to the neckline at $30,000 and may eventually fall more to $20,000. Also, for the inverse head and shoulder pattern to hold, I expect price to first go up to the supply zone at $43,000. If price rejects the zone, then I expect price to fall to $35,000 to form the right shoulder, then long to $58,000. Therefore we have two likely moves here. Either price fall to $35,000 and rise again to $58,000 or price fall to $30,000 and continue to fall to $20,000. What do you think? Share your opinion in the comment section✍️ Please support this idea with a LIKE👍 if you find it useful🥳 Follow me to receive more updates on this pair🤙 Happy Trading💰🥳🤗 Trading Involves High Risk⚠️ Not Financial Advice💸 Use Proper Risk Management💹 Thank you for your support!💓 NB: If you would like to have one-on-one interaction with me about analysis of coins or currency, DM me.
BITSTAMP:BTCUSDShort
by PetrockFxTrading
Nifty Forms Inverted Head & Shoulders (Bullish Reversal)Nifty Forms Inverted Head and Shoulders and now we may be ready for a good 500 points move on Nifty as long as we hold 14800 The Neckline is at 14830 and we have clearly seen it to be Point of Control (as per Order Flow Analysis) Buying seems to be happening and now on Monday as long as we start positive and break 15000 levels, markets are ready for a good upmove of 500 points. Monday we have TCS results and it is expected to be good and we may see breakouts in IT stocks as we are at all time high for most of the stocks.
NSE:NIFTYLong
by sreeharshasp
Inverted Head and Shoulders on GBP/USD at the end of WeekAt the end of the trade week 10/4 We can see GBP/USD approaching and breaking above a key level of resistance with strong bullish sentiment. After a consolidation and breakout at a key level of weekly/daily support GBP/USD looks like a promising buy set up and and a textbook inverted head and shoulders. Note: We trade reactively to the market with actions driven by confluence of analysis, allowing ourselves to enter the market when the market makes an opportunity available for us. Tell me what you think GBP/USD Will do this week in the Comments! Happy Trading Week! -J
0
by JHair20
Bitcoin: Bullish Engulfing Candle Establishes New Long Setup.1. We focus on price action, levels and probabilities. News, drama, and other non order flow related information carries little weight in our decision making process. I have been explaining that the probability of this overall location favors bullish reversals which is why we did not exit our swing trade long in the face of bearish order flow (see 7275 to 5464 support zone). 2. I made this point in my previous article: "Can Bitcoin test lower prices? Anything can happen, BUT price would have to close below 6850 in order to prompt a retest of the 6550 reversal zone boundary. Any bullish reversal pattern in these areas would offer compelling swing trade and position trade opportunities based on the criteria of our strategies." Yesterday's bearish candle was NOISE and nothing more than a lure for short liquidity. 3. The bullish outside bar (engulfing candle) establishes a HIGHER LOW formation off of the 6900 level. This can be the very beginning of a broad Wave 3 IF 6450 is not compromised again. Higher lows often lead to higher highs. 4. Within the 7275 to 5464 support zone, there is now an inverted head and shoulders formation. This is a large magnitude reversal pattern that has developed within a location that favors BULLISH patterns. 5. In order to see momentum follow through, price needs to close above 8K. IF such an event unfolds, 8500 and the low 9Ks are likely to be tested with hours or days (with the help of all the small time frame short margin liquidations). We are maintaining our swing trade long and patiently WAITING for price to reach our proportional targets (mid 7Ks, mid 8Ks and low 9Ks). We focus on price action as it relates to levels and probabilities, nothing else. I hope you found this update helpful for your own analytical process. My goal is to provide market context, perspective and an idea on how we manage our trades in this environment.
BITSTAMP:BTCUSDLong
by MarcPMarkets
60