NR - 10 month Sloping Down HEAD & SHOULDER CONTINUATION
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Since 2014, my markets approach is to spot trading
opportunities based solely on the development of
CLASSICAL CHART PATTERNS
🤝Let’s learn and grow together 🤝
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Hello Traders ✌
Here we have a quite perfect Head & Shoulders Continuation with a sloping down neckline. The main problem with sloping necklines is dealing with the immediate previous highs (or lows) but this is an easy case since the breakout would exceed all of them at the same time. Target is between two previous levels, the strongest just beyond it at 6.40 (which is good since it is should “attract” prices) and one weaker just before it at 5.60 with which we may have to deal if prices go towards target..
Instead of making another post on the educational section, I want to point out something about what seemed to be another Head & Shoulder (black one). When evaluating a chart pattern, we must always consider two aspects:
If the pattern itself has all the characteristics it must have to be considered as such;
Where it is developing and with which proportion compared with the macro situation;
In that case, looking only at the pattern, we can label it as a Head & Shoulders Bottom BUT it is not at the bottom of anything! It is not trying to revert any previous downtrend compared with its proportion!
If we look at weekly chart, we can see that it is just re-testing the all-time low. This is true EVEN if it has quickly reached its target at 3.60!
Almost identical scenario with VLO stock: https:
Both are energetic stocks involved in Oil services so be aware that considering both opportunities is like doubling the risk.
🔎🔎🔎 ALWAYS REMEBER
"A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist"
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⚠ DISCLAIMER ⚠
The content is The Art Of Charting's personal opinion and it is posted purely for educational purpose and therefore it must not be taken as a direct or indirect investing recommendations or advices. Any action taken upon these information is at your own risk.
════════════════════════════════
Since 2014, my markets approach is to spot trading
opportunities based solely on the development of
CLASSICAL CHART PATTERNS
🤝Let’s learn and grow together 🤝
═════════════════════════════════
Hello Traders ✌
Here we have a quite perfect Head & Shoulders Continuation with a sloping down neckline. The main problem with sloping necklines is dealing with the immediate previous highs (or lows) but this is an easy case since the breakout would exceed all of them at the same time. Target is between two previous levels, the strongest just beyond it at 6.40 (which is good since it is should “attract” prices) and one weaker just before it at 5.60 with which we may have to deal if prices go towards target..
Instead of making another post on the educational section, I want to point out something about what seemed to be another Head & Shoulder (black one). When evaluating a chart pattern, we must always consider two aspects:
If the pattern itself has all the characteristics it must have to be considered as such;
Where it is developing and with which proportion compared with the macro situation;
In that case, looking only at the pattern, we can label it as a Head & Shoulders Bottom BUT it is not at the bottom of anything! It is not trying to revert any previous downtrend compared with its proportion!
If we look at weekly chart, we can see that it is just re-testing the all-time low. This is true EVEN if it has quickly reached its target at 3.60!
Almost identical scenario with VLO stock: https:
- Pattern Class: 🌕🌕🌕🌕🌑
- Target area: 6.00
- Breakout area above: 4.10
🔎🔎🔎 ALWAYS REMEBER
"A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist"
═════════════════════════════════
⚠ DISCLAIMER ⚠
The content is The Art Of Charting's personal opinion and it is posted purely for educational purpose and therefore it must not be taken as a direct or indirect investing recommendations or advices. Any action taken upon these information is at your own risk.
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