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
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.