Hey Guys!
I just wanted to post a quick tutorial on how to find legitimate Head and Shoulder patterns.
In this lesson, I explain the 5 rules that a Head and Shoulders pattern must abide for it to be legitimate.
Here's the rules:
#1 Both necklines must be parallel.
#2 The main neckline cannot be broken out of surpassed before the right shoulder's price level is reached.
#3 The Head and Shoulders must be relatively flat.
#4 The top neckline can only be adjusted to a wick between the main pivot and the last correlating major pivot.
#5 The prior trend must be in the opposing direction. (which is up in the case of a "short" Head and Shoulders Pattern )
That's it! I hope this helps!
Have a great day!
Ken
I just wanted to post a quick tutorial on how to find legitimate Head and Shoulder patterns.
In this lesson, I explain the 5 rules that a Head and Shoulders pattern must abide for it to be legitimate.
Here's the rules:
#1 Both necklines must be parallel.
#2 The main neckline cannot be broken out of surpassed before the right shoulder's price level is reached.
#3 The Head and Shoulders must be relatively flat.
#4 The top neckline can only be adjusted to a wick between the main pivot and the last correlating major pivot.
#5 The prior trend must be in the opposing direction. (which is up in the case of a "short" Head and Shoulders Pattern )
That's it! I hope this helps!
Have a great day!
Ken
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.