Master the Art of Head and Shoulders Pattern Trading! 📈📉
Unleash the power of this classic chart pattern to identify potential trend reversals.
Key Points:
Head and Shoulders: A bearish reversal pattern consisting of three peaks, with the middle peak (head) being the highest.
Neckline: A trendline connecting the troughs of the pattern.
Breakout: A decisive move below the neckline, confirming the bearish reversal.
Trading Strategy:
Entry: Sell after the price breaks below the neckline.
Stop-Loss: Place your stop-loss above the recent high.
T
ake-Profit: Use technical analysis tools like Fibonacci retracement or price targets to determine profit levels.
Remember:
Risk Management: Always use stop-loss orders to protect your capital.
Confirmation: Combine the Head and Shoulders pattern with other technical analysis tools for increased accuracy.
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