This pattern has four main sequential steps for it to complete itself and signal
the reversal:
1. The left shoulder is formed when the currency pair reaches a new high and then retraces slightly to a new low.
2. The formation of the head occurs when the currency pair reaches a higher high then falls back near the low that was formed as part of the left shoulder.
3. The right shoulder is formed with a high that is slightly lower than the high formed in the head but is again followed by a fall back to the lows of the left shoulder.
4. The price then breaks the neckline/trend-line. In other words, price falls below support going on to break the level of the three lows created by the previous head and left shoulder.
__________________________________________________________________________________________________________________________________________________________________________________________________________
No part of this book may be reproduced or used in any manner without written permission of the copyright owners except for the use of quotations in a book review.
Any opinions, news, research, analysis, prices, trade discussions, or other information contained on this website are educational in nature and merely provided as a presentation of trading strategies. Commentaries made on this website reflect our own opinions and trading techniques and do not constitute investment advice.
All information and material is for educational and entertainment purposes only and is not intended to provide financial advice.
I'm not a registered investment advisor.
02:19:27 ( UTC )
Thu Jan 2, 2020
the reversal:
1. The left shoulder is formed when the currency pair reaches a new high and then retraces slightly to a new low.
2. The formation of the head occurs when the currency pair reaches a higher high then falls back near the low that was formed as part of the left shoulder.
3. The right shoulder is formed with a high that is slightly lower than the high formed in the head but is again followed by a fall back to the lows of the left shoulder.
4. The price then breaks the neckline/trend-line. In other words, price falls below support going on to break the level of the three lows created by the previous head and left shoulder.
__________________________________________________________________________________________________________________________________________________________________________________________________________
No part of this book may be reproduced or used in any manner without written permission of the copyright owners except for the use of quotations in a book review.
Any opinions, news, research, analysis, prices, trade discussions, or other information contained on this website are educational in nature and merely provided as a presentation of trading strategies. Commentaries made on this website reflect our own opinions and trading techniques and do not constitute investment advice.
All information and material is for educational and entertainment purposes only and is not intended to provide financial advice.
I'm not a registered investment advisor.
02:19:27 ( UTC )
Thu Jan 2, 2020
