Buy zone tcs
Head and Shoulders Pattern Overview:
The Head and Shoulders pattern is a popular reversal pattern used in technical analysis. It consists of three peaks:
Left Shoulder: A peak, followed by a decline.
Head: A higher peak, followed by another decline.
Right Shoulder: A peak that is lower than the head but similar to the left shoulder, followed by a decline.
Once the pattern is complete, traders look for a break below the neckline for a bearish Head and Shoulders (signaling a downtrend), or a break above the neckline for an inverse Head and Shoulders (signaling a potential uptrend).
Buy Zone in the Inverse Head and Shoulders Pattern:
For a bullish reversal (inverse Head and Shoulders pattern):
Identify the Neckline:
The neckline connects the two lows that form between the three peaks.
Breakout Confirmation:
Wait for a breakout above the neckline. Once the price closes above the neckline, it signals the potential beginning of a bullish trend.
Buy Zone:
The buy zone is typically set right above the neckline or on a pullback to the neckline after the breakout.
Target:
The price target is usually the distance between the head and the neckline, projected upwards from the breakout point.
Stop Loss:
Set the stop loss just below the right shoulder or below the neckline, to protect against false breakouts.
Bearish Head and Shoulders (Sell Zone):
For a bearish reversal:
Neckline Identification:
The neckline is drawn connecting the two lows that form between the shoulders.
Breakout Confirmation:
Wait for a break below the neckline, confirming the bearish breakout.
Sell Zone:
The sell zone is typically set right below the neckline or on a pullback to the neckline after the breakdown.
Target:
The price target is the distance between the head and the neckline, projected downward from the breakout.
Stop Loss:
Set the stop loss just above the right shoulder or the neckline to avoid getting caught in false breakouts.
The Head and Shoulders pattern is a popular reversal pattern used in technical analysis. It consists of three peaks:
Left Shoulder: A peak, followed by a decline.
Head: A higher peak, followed by another decline.
Right Shoulder: A peak that is lower than the head but similar to the left shoulder, followed by a decline.
Once the pattern is complete, traders look for a break below the neckline for a bearish Head and Shoulders (signaling a downtrend), or a break above the neckline for an inverse Head and Shoulders (signaling a potential uptrend).
Buy Zone in the Inverse Head and Shoulders Pattern:
For a bullish reversal (inverse Head and Shoulders pattern):
Identify the Neckline:
The neckline connects the two lows that form between the three peaks.
Breakout Confirmation:
Wait for a breakout above the neckline. Once the price closes above the neckline, it signals the potential beginning of a bullish trend.
Buy Zone:
The buy zone is typically set right above the neckline or on a pullback to the neckline after the breakout.
Target:
The price target is usually the distance between the head and the neckline, projected upwards from the breakout point.
Stop Loss:
Set the stop loss just below the right shoulder or below the neckline, to protect against false breakouts.
Bearish Head and Shoulders (Sell Zone):
For a bearish reversal:
Neckline Identification:
The neckline is drawn connecting the two lows that form between the shoulders.
Breakout Confirmation:
Wait for a break below the neckline, confirming the bearish breakout.
Sell Zone:
The sell zone is typically set right below the neckline or on a pullback to the neckline after the breakdown.
Target:
The price target is the distance between the head and the neckline, projected downward from the breakout.
Stop Loss:
Set the stop loss just above the right shoulder or the neckline to avoid getting caught in false breakouts.
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.