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head and shoulder pattern appears when stronger hands tries to aggressively buy and sell and tries to sell most of the stocks gives rise to lest shoulder with good volume and then there is hike in price to far grater then shoulder and when stronger hand s are done with selling there is dip in graph with low volume all this happens in minimum 3 moths. once the right shoulder breaks neck line the trend is said to be bearish.
Head and Shoulder is one of the price pattern which shows aggressive buying and selling the stocks.
Conditions to determine the bearish trend :
The Head should be the highest among the recent price action.
The volume during the Left shoulder should be highest.
Duration to form each pattern like L shoulder, Head, R shoulder is minimum 1 month.
R. shoulder volume should be as low as possible.
Short position can be considered while breaking down the neck line.
Head and shoulder is a price pattern which takes place over 3-5 months.
Conditions: The left shoulder should have high traded volume. Right shoulder volume should be as low as possible.
It is a formation of two tops like shoulders with a head in between being the higher top
duration 3 months volume should be high at left shoulder
bearish trend identified when there is a breakout at the neckline of the right shoulder
When two small tops are formed and one higher top is formed in between the two small tops, it looks like head in between two shoulders, if we identify this type of graph, it is head and shoulder formation.
This is formed when stronger hands gradually sell a stock, in the initial stage the stronger hand will keep on buy and sell the stock, but maximizes selling of the stock. If all the stock with them are sold, the price starts to go down, this determines a bearish trend.
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