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
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Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.