Price Action: How to trade inverted head and shoulders and head and shou...

  

BO Turbo Trader Price Action Guide for Binary Options Trader PDF https://goo.gl/VmcKjJ 👉 SMASH THE LIKE BUTTON 👈 👉 HIT THE SUBSCRIBE BUTTON 👈 👉 LEAVE A COMMENT 👈 Facebook-Group: https://www.facebook.com/groups/31949... Twitter: https://twitter.com/boturbotrader Binary Option Win Rate and Net Profit Calculator + Simulator https://goo.gl/NeUyCp Money Management Masaniello Program + Excel File https://goo.gl/9pNRhs Start Mining Cryptocurrency http://goo.gl/1mJLbU Risk Warning: Your invested capital may be at risk. This video is not an investment advice. Indicators: EMA 3 (blue) EMA 20 (yellow) EMA 50 (orange) EMA 100 (red) EMA 200 (purple) Bollinger Band Period 20 Deviation 2 (green) Bollinger Band Period 20 Deviation 1 (white) Head and shoulders (chart pattern) On the technical analysis chart, the Head and shoulders formation occurs when a market trend is in the process of reversal either from a bullish or bearish trend; a characteristic pattern takes shape and is recognized as reversal formation. A head and shoulders pattern is also a trend reversal formation. It is formed by a peak (shoulder), followed by a higher peak (head), and then another lower peak (shoulder). A “neckline” is drawn by connecting the lowest points of the two troughs. The slope of this line can either be up or down. An inverse head and shoulders, often referred to as a head and shoulders bottom, is a chart pattern, used in technical analysis to predict the reversal of a current downtrend. This pattern is also known as a "reverse head and shoulders" or a "head and shoulders bottom". Head and shoulders (chart pattern) On the technical analysis chart, the Head and shoulders formation occurs when a market trend is in the process of reversal either from a bullish or bearish trend; a characteristic pattern takes shape and is recognized as reversal formation. Head and shoulders patterns can also signal that a downward trend is about to reverse into an upward trend. In this case, the stocks price reaches three consecutive lows, separated by temporary rallies. Of these, the second trough is the lowest (the head) and the first and third are slightly shallower (the shoulders). It means you should not take a long position if you see a head and shoulders formed at the bottom of a downtrend, because although head and shoulders is known as a reversal pattern, it is still possible that the downtrend to be continued after the formed head and shoulders. The reaction lows of each peak can be connected to form support, or a neckline. Head and Shoulders Top example chart from StockCharts. As its name implies, the Head and Shoulders reversal pattern is made up of a left shoulder, a head, a right shoulder, and a neckline. Chart Examples of Head and Shoulders Patterns. Classic head and shoulders reversal pattern in an uptrend (bearish). Measure the size of the base (purple line) and subtract that (green line) from the breakout point of the neckline for your measured target (green dotted line). A “neckline” is drawn by connecting the lowest points of the two troughs. The slope of this line can either be up or down. Typically, when the slope is down, it produces a more reliable signal. Head and Shoulders Pattern. In this example, we can easily see the head and shoulders pattern. The head and shoulders pattern consists of four distinct parts: The left shoulder, the head, the right shoulder, and the neckline. Each of these four must be present for the formation to exist. How it works (Example):. To be a true head and shoulders pattern, the volume pattern must also meet strict requirements. The pattern is just the outcome or byproduct of that process. To better explain things let's look at it from a different perspective. For this, we're going to use a real head and shoulders formation that occurred on the GBPJPY weekly chart. gbpjpy-head-and-shoulders-reversal.