Today we will talk about the Head and Shoulders Pattern 👨💻
This pattern is formed in an uptrend at price highs. He has three upper points - a conventional head in the middle and shoulders on the sides, plus two lower points - a conventional neck line should be drawn through them. When the pattern is well formed, the price falls below the neckline after the right shoulder is formed. The price will most likely fall by an amount equal to at least the number of points from the neck to the top of the “head”. Selling is carried out immediately after the chart breaks below the neck level.
Once you have identified a head and shoulders pattern in an uptrend and the right shoulder has formed, you can open a sell order as soon as the price breaks the neckline. Before entering the market, wait for the candle to close below the neckline to avoid a false breakout.
