Chart pattern: Head and Shoulders (H&S)
The Head and Shoulders, from now on referred to as H&S, is a chart pattern used in technical analysis of stock markets. It is a pattern that indicates a reversal, signaling the end of a trend and the beginning of a new trend in the opposite direction.
It is one of the most important and widely used patterns due to its high reliability and the number of required implications. However, this does not mean it is infallible, as its success rate is around 70%.
Regarding its potential projection, if the price breaks below the support line after the formation of the Right Shoulder (RS), the range between the maximum price of the Head (H) and the support line is measured. This distance is then applied to the breakout point, as shown in the image, to obtain the minimum pattern projection.
It is one of the most important and widely used patterns due to its high reliability and the number of required implications. However, this does not mean it is infallible, as its success rate is around 70%.
Regarding its potential projection, if the price breaks below the support line after the formation of the Right Shoulder (RS), the range between the maximum price of the Head (H) and the support line is measured. This distance is then applied to the breakout point, as shown in the image, to obtain the minimum pattern projection.
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إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.