Price patterns : Flag, Cup & Triangle. Double top & double bottom – patterns that strongly determine the next movement of the market & price flow ….
Recently Active Members
Bullish View
Bearish View
-
Bearish-GAP-SHORT-BICON-25-10-2019 October 25, 2019
-
FEDERAL BANK – BEARISH ENGULFING October 17, 2019
-
Cummins India – Bearish Engulfing – 24Sep19 September 25, 2019
-
Day29-Tata Motors DVR – Bearish Piercing – 12Sep19 September 12, 2019
-
Day27-Bearish-Engulfing pattern-Tech Mahindtra-09Sep19 September 10, 2019
Hi,
Head and shoulder is a āreversal patternā in which the price trend either changes from bearish to bullish (Bullish Head & Shoulders Bottom Reversal) or bullish to bearish (Bearish Head & Shoulders Top Reversal) and takes a shape that looks like a human head with shoulders.
Conditions to determine bearish
The initial rally into the pattern can be steep or gradual.
The first shoulder is formed where the price peaks before falling back to a level of support ā the neckline.
Once the shares reach the neckline, they then bounce to post a higher peak, before retreating again back to the neckline. The shares then rebound once again from the neckline, this time reaching a lower peak than the previous neckline bounce managed to reach.
The formation of Head and Shoulder has been a continuous decrease in the volume. That means volume will be higher in the left shoulder and eventually it decreases with the formation of head and right shoulder. The main process of the head and shoulder pattern is accumulation and distribution.
The pattern is only confirmed once the sell off from the second shoulder breaks below the neckline, after which the target objective is equal to the distance from the neckline to the peak of the āheadā.
The duration to form the each should be minimum 1 month.
Thanks Naresh for the Detailed explanation…