3 Comments
  1. Suresh Surulimuthu 4 years ago

    Hello Sir,
    Answer to your Question:
    Head and shoulder is basically a reversal pattern. The name head and shoulder is so because graphically the pattern resembles two shoulders and a head in between shoulders. The pattern contains three successive peaks with the middle peak (head) being the highest and the two outside peaks (shoulders) being low and roughly equal. The reaction lows of each peak can be connected to form support or a neckline.

    The conditions:
    1) It takes at least three months for this pattern to form.
    2) The left and right shoulders are roughly equal.
    3) The high volume takes place in the left shoulder (LS)
    4) Low volume in the right shoulder (RS) because the stronger hands are already sold out.
    5). The short position can be initiated when the price breaks below the neckline.

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