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Headandshouldersformation

XAGUSD Spot Silver Long XAGUSD on the 2H chart over the past month has ascended into a head and shoulders pattern and then descended into a pivot on June 22nd. As it is now ascending, silver is a long trade candidate. I see the stop loss as pivot low on 5/25 . Based on the volume profile and its POC line, as well as the H & S pattern, the first target is the POC line at $ 23.3, the second target at $23.45 which is the neckline of the pattern while the runner is $23.9 the horizontal line of the top of the shoulders. I will take off 1/3 of the position at each target. Additionally, I will raise the stop loss to break even upon getting halfway to the first target and to the first target upon getting halfway to the second target. While leveraged on forex I expect a high profit compared with the risk in the trade which will be risk off upon moving the stop loss.
OANDA:XAGUSD
by AwesomeAvani
FrogAlgo: Head and Shoulder PatternThe head and shoulders pattern is a well-known chart pattern utilized in technical analysis to anticipate potential reversals in price trends. It derives its name from its visual resemblance to a head and two shoulders. Typically forming after an uptrend, this pattern is considered bearish and indicates a potential reversal in the market. Here are the main characteristics of a head and shoulders pattern: - Formation: The pattern consists of three peaks or highs, with the middle peak (the head) being the highest and the two outer peaks (the shoulders) slightly lower in height. The lows between the peaks form the neckline valleys. - Neckline: The neckline acts as a support level, connecting the lows between the peaks. It serves as a crucial level for confirming the pattern. The neckline can slope upward, downward, or be horizontal. - Volume: Volume plays a significant role in confirming the pattern. Typically, volume is higher during the formation of the left shoulder and the head, and lower during the formation of the right shoulder. A notable increase in volume can occur when the price breaks below the neckline, confirming the pattern. - Breakout: The pattern is considered complete when the price breaks below the neckline. This breakout serves as confirmation for the bearish reversal, signaling a potential shift from an uptrend to a downtrend. - Price Target: To estimate the potential downside target, measure the vertical distance from the neckline to the top of the head, and subtract that distance from the breakout point. This projected target represents a potential price level that the asset could reach after the pattern is confirmed. - It is important to note that the accuracy of the head and shoulders pattern, like any other chart pattern, is subjective and can vary depending on several factors. Factors such as the timeframe, market conditions, and the quality of the pattern itself can influence its accuracy. - Traders and analysts often use additional confirmation signals and indicators, such as volume analysis, momentum oscillators, and trendlines, to increase the reliability of their predictions when identifying head and shoulders patterns. While the head and shoulders pattern is widely recognized and utilized by technical analysts, it is important to incorporate it into a comprehensive trading strategy that considers other factors such as fundamental analysis, market sentiment, and risk management.
AMEX:SPY
by A1TradingHub
Sell GBPCHF Head and Shoulders PatternI have posted about this in my previous idea on 22nd of June saying there is a Head and Shoulders pattern on the 4H timeframe. Now price is breaking the neckline to complete the head and shoulders formation. Now is the time to sell at the close of the current candle.We also have RSI divergence giving extra confluence. I believe we don't need this large stop loss that I have said in my previous idea (which was 1.14444) but instead a tighter stop might be better and make more sense of the current long bearish candle. Trade Setup: Entry - At the close of the current candle Stop Loss - 1.14124 Take Profit - 1.11679 Good Luck and happy trading.
Short
by fayezhazzem
GBPCHF Head and Shoulders PatternThere is a head and shoulders pattern on the 4H timeframe on GBPCHF that has formed at a resistance level and now starting to show weakness as the uptrend runs out of steam.However I strongly recommend waiting for the neck line to be broken first and then enter a short trade.Also another confluence for this trade is the RSI divergence suggesting a downtrend.The trade setup for this would be to enter at the break of the neckline(wait for candle close) which is also a flip zone( resistance turned to support) and set stop loss at 1.14444 and take profit at the second support level at about 1.11679 Trade Setup: Entry - at the break and close of neckline Stop Loss - 1.14444 Take Profit - 1.11679
Short
by fayezhazzem
EURUSD weekly outlook: Bearish bias for June weeks 3-4Weekly Outlook (W) Bear bias until price action establishes an uptrend above 1.1092 6/15/23 Still making higher highs and lower highs Last week of May just made the last higher low @ Weekly fib 78.6 level Expectation: IF Continues uptrend: reach last HH level or 1.1100 and eventually 1.1250 (27 ext) If not: Price reactions from levels below: 1) 0.0865 H&S Weekly line and does a downtrend from there 2) Weekly IMB and OB with BOS down. INVALIDATION POINT: 1.1092
Short
by RSC_FX
2
Nifty Trade Setup (13-June-2023)This will be my personal trade Setup, This is not an advice of any kind to initiate trade according to this setup. This is for only for my learning purpose and maintaining my trading journal. Head & Shoulder pattern on higher time frame of Nifty. If nifty respects this pattern then we can expect good move downward. On Upside Resistance is at : 18660,18777. On Downside support is at : 18550,18500, (If market respects pattern then 18400 last support. From last week all indices are range bound and not good for directional trades setups. For Trade Setup today: 1.) Will buy if break and sustain above 18660 for target of 18720, 18750. 2.) If price breaks down and sustains below 18550 ( Neckline of Head & Shoulders pattern ) then will short for target of 18502, 18460. No trades if gaps and if there is no clear movement or there are overlapping candles.
NSE:NIFTY
by TradeInsights
The Bears Can Smell The MenstruationExpected Path (solid black): - Drop to 396-401 by May 5th (this would mean a very bearish upcoming week - has the setup if SPY stays under 418, I'm seeing gap down next Monday and then sell off) - Then bounce to test 408-412 by May 12th; if rejected under 412 then it will continue back down to 388-393 range by end of May Most Bearish path - solid pink (head and shoulders break down, seeing distribution recently at the 410-415 levels): - Drop to 385-388 by May 12th - I'm in puts obviously because this is possible More Likely Bearish path (dashed red) - Drop to 398 - 402 by May 19th - If 400 holds as support I'll become bullish Alt Path - Bullish (dashed green) - Run to 418-423 by May 11th, then pullback to test 414-416 for support - If that were to play out then a break back above 423 could send it to 430 (in which case the bears would Still be able to smell the menstruation and it would get wrekd) In summary, breakdown level is 401.48; breakout level is 422.99 I'm expecting SPY to be trading near 406 in July, but until then there will be tradable swings in the 380-430 range. Regaurds ~ Brick.
AMEX:SPYShort
by JerryManders
16
📊How To Trade: H&S Pattern📍How to Identify and Use the Head and Shoulders Pattern The head and shoulders pattern is characterized by key features to look out for on trading charts. It typically occurs after a bullish uptrend when buying pressure begins to fade. The pattern includes a left shoulder, a higher middle peak, and a right shoulder approximately at the same level as the left shoulder. Additionally, the pattern should have a distinct neckline acting as a support level. ✔️To successfully identify and trade the head and shoulders pattern, consider the following step-by-step approach: 🔹 Look for three distinct tops , namely the left shoulder, head, and right shoulder, which occur after an uptrend. 🔹 Identify the neckline support level , which connects the lowest points of the left and right shoulders. 🔹 Wait for a breakout to occur, confirmed by a candle closing below the neckline. 🔹 Once the breakout is confirmed, place a selling order to capitalize on the bearish reversal signaled by the pattern. 🔹 Implement a stop-loss order above the neckline, ideally positioned at the highest level of the right shoulder, to manage risk effectively. 🔹 Consider using a risk-reward ratio to determine a suitable target for taking profits, ensuring the potential reward justifies the risk taken. Lets consider the following example below as a step by step to identify the pattern. This is what it would look like in a real scenario: Step 1: Price is moving on an uptrend and starting to form the head and shoulder peaks Step 2: We can identify the neckline which we can observe price react as a temporary support which connects the lower peaks. We need to wait for a clear breakout in order to find an entry insert s2.png image here Step 3: Price broke below the neckline and re-tested the neckline so we enter a short position on the re-test with taking profit target the length of the head to neckline insert s3.png image here Step 4: We can see the pattern was correct and it hit our targets insert s4.png here 👤 @‌QuantVue 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
9
BTCUSDT Breakout - Follow Short TF DayThe reversal pattern Head and Shoulders was formed successfully with a strong price rejection when it re-tested on the uptrend-neckline around 28k, which is the greatest entry point for a swing short position. Although the best swing short opportunity for shorts have been missed, opportunities for shorts are still there. Follow short when the price breaks below strong support zone at 26550 Plans: - Follow short if price close below 26550 - Stop Loss if the price rise above 26550 after a false break - Take Profit at 25250 and 23850 respectively If a false break occur in the opposite direction (reversal to uptrend), this would be a great Long entry with a target to TP at 28k
Short
by ChartTrail
ADA GREAT Long OpportunityAs shown in the chart this is an inverted head and shoulders pattern. Most often price will reach the 1:1 extension of the distance between the Head and the neck line (shown by the yellow line) taken from the top of the right shoulder. The stop loss is placed below the tip of the right shoulder. Entry = 0.3748 Take Profit 1 = 0.4755 Take Profit 2 = 0.5543 Stop Loss = 0.2921 The fundamentals at the moment are really bearish, so I won't be taking this trade, but it could be a good option to enter this to hedge some risk if you are shorting other coins at the moment. Not financial advice, intended for educational purposes only
Long
by TradewithLu
Ford Motor Company (F) - Multi Pattern AnalysisCompany: Ford Motor Company Ticker: F Exchange: NYSE Sector: Consumer Discretionary Introduction: Today's technical analysis takes a look at Ford Motor Company (F), a prominent player in the Consumer Discretionary sector, listed on the NYSE. A complex formation is unfolding on the weekly chart where a long-term Head and Shoulders pattern encounters a shorter-term Descending Triangle. This unusual setup, featuring a recent breakaway gap, may suggest a bullish trend reversal. Head and Shoulders & Descending Triangle Pattern: A Head and Shoulders pattern typically signals a trend reversal from bullish to bearish, while a Descending Triangle is usually seen as a bearish continuation pattern. However, in this unique scenario, the right shoulder of the Head and Shoulders pattern, which is longer than the left, has morphed into a Descending Triangle, creating a complex setup. Analysis: Ford's chart shows a clear Head and Shoulders pattern, with the Descending Triangle making up the right shoulder. The triangle has five touch points on the upper boundary and three on the lower. The support of the descending triangle coincides with the support of the head and shoulders. We've noticed a breakaway gap which indicates a bullish breakout from the descending triangle. Currently, the price appears to be attempting a break above the 200 EMA. If we witness a weekly candlestick close above the 200 EMA, we could interpret this as a transition into a bullish environment, presenting a potential long position entry. The price target is set at $18.65, representing an approximately 49% rise from the breakout level. Notably, a minor resistance might be encountered at $16.69. A breakout above this level could also signify a failure of the Head and Shoulders pattern, warranting a recalculation of the price target. Conclusion: Ford's weekly chart offers an intriguing setup for classical price pattern traders. The unusual combination of a Head and Shoulders pattern and a Descending Triangle, alongside a recent breakaway gap, might indicate a potential bullish reversal. This analysis should form part of a comprehensive market research and risk management strategy. Please remember, this is not financial advice, and investing always involves risk. If you found this analysis helpful, please consider liking, sharing, and following for more insights. Wishing you profitable trading! Best regards, Karim Subhieh
NYSE:F
by KarimSubhieh
EURAUD I Broke 6350 resistance and forming head and shoulderWelcome back! Let me know your thoughts in the comments! ** EURAUD Analysis - Listen to video! We recommend that you keep this pair on your watchlist and enter when the entry criteria of your strategy is met. Please support this idea with a LIKE and COMMENT if you find it useful and Click "Follow" on our profile if you'd like these trade ideas delivered straight to your email in the future. Thanks for your continued support!
Short
by BKTradingAcademy
7
Bitcoin ($BTC): Chart Patterns in Mid Term...Hi everyone! The Daily Chart should speak clearly, so we have two potentially interesting patterns that we could follow in the coming weeks. From a technical point of view, we are talking about a "Head & Shoulders" and an "Inverted Head & Shoulders" . The levels shown on chart are approximate, what I am interested in sharing with you is the potential swing that Bitcoin should form in the Mid Term (Log Scale). Trade with care! 👍 ...and if you think that my analysis is useful, please..."Like, Share and Comment" ...thank you! 💖 Cheers! N.B.: Updates will follow below
by TheAnonymousBanker
6
BITCOIN : NGL Looking Bearish 😐 Hi Traders, Investors and Speculators of Charts📈📉 Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year 🏫 From the short term / daily perspective, Bitcoin has turned bearish. These reasons are pointed out on the chart, including a few very clear chart patterns. There are a few things I can think of that may be causing this short term selloff: 👉 Market Correction: Cryptocurrency markets are known for their volatility, and periodic price corrections are common. After experiencing a significant surge in price, it is not uncommon for investors to take profits, leading to a temporary decline in the price. 👉 Regulatory Concerns : Government regulations and policy decisions can have a significant impact on the cryptocurrency market. Negative news regarding regulatory developments, such as increased scrutiny, potential bans, or stricter regulations, can lead to market uncertainty and a decrease in investor confidence. Regulatory actions in major economies can create selling pressure and contribute to a downward trend in BTC's price. 👉 Whales whaling around, causing an even larger sell-off as the price of BTC drops and Technical Indicators turn bearish on the daily I t's important to note that I'm only short until FWB:25K , at which point a bounce is possible. If you missed it, here's an earlier analysis regarding this exact support zone and it's importance for the price of BTC : _______________________ 📢Follow us here on TradingView for daily updates and trade ideas on crypto , stocks and commodities 💎Hit like & Follow 👍 We thank you for your support ! CryptoCheck BINANCE:BTCUSDT COINBASE:BTCUSD BITSTAMP:BTCUSD KUCOIN:BTCUSDT BYBIT:BTCUSDT INDEX:BTCUSD BITFINEX:BTCUSD KRAKEN:BTCUSD PHEMEX:BTCUSDT
Short
by CryptoCheck-
27