Price is going to touch the confluence zone in order to form one part of the inverse right shoulder before we long price to the moon.
Let me explain what the head and shoulder pattern entail and how to trade it..
THE HEAD AND SHOULDERS PATTERN
A head and shoulders pattern is a chart formation that appears as a baseline with three peaks, the outside two are close in height and the middle is highest. In technical analysis, a head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal.
NORMAL H&S
Left shoulder: Price rise followed by a price peak, followed by a decline.
Head: Price rise again forming a higher peak.
Right shoulder: A decline occurs once again, followed by a rise to form the right peak, which is lower than the head.
INVERSE H&S
Left shoulder: Price declines followed by a price bottom, followed by an increase.
Head: Price declines again forming a lower bottom.
Right shoulder: Price increases once again, then declines to form the right bottom.
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Let me explain what the head and shoulder pattern entail and how to trade it..
THE HEAD AND SHOULDERS PATTERN
A head and shoulders pattern is a chart formation that appears as a baseline with three peaks, the outside two are close in height and the middle is highest. In technical analysis, a head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal.
NORMAL H&S
Left shoulder: Price rise followed by a price peak, followed by a decline.
Head: Price rise again forming a higher peak.
Right shoulder: A decline occurs once again, followed by a rise to form the right peak, which is lower than the head.
INVERSE H&S
Left shoulder: Price declines followed by a price bottom, followed by an increase.
Head: Price declines again forming a lower bottom.
Right shoulder: Price increases once again, then declines to form the right bottom.
#forex #forextrading #forexmarket #forex #freebies #forexsignals #instagram #facebook #Divergence
If you like this post please leave a like, share, follow and most of all, engage with the post by leaving your thoughts in the comment section.
