K-line introductory tutorial lesson 1｜Head and shoulders top and head and shoulders bottom patterns
Core notes📒:
🔹The head and shoulders top breaks through the lower boundary of the original box shock, and the support turns into resistance.
🔸The head and shoulders bottom breaks through the upper boundary of the original box shock, and the resistance turns into support.
Figure 1⃣️This is actually a lagging pattern, that is to say, you have to wait until the K-pillar comes out before you can know - "Oh, it turns out this is a head and shoulders top."
Next, I will quote the reading method of the tweet below to interpret the two patterns of head and shoulders top and head and shoulders bottom.
Figure 2⃣️The most critical thing about these two forms is actually the position of its neckline, which is the two marked areas in the picture. Strictly speaking, these two forms are just generated by the K-pillar running in the box oscillation. Special form.
Summary: There is no need to be too obsessed with the number of heads and shoulders, because you will find in the real market that there may be multiple heads or multiple shoulders. For example, there are three kings below.
Only extract valuable information and share useful knowledge｜Transportation from Yu Sanshui🎣
