an2n019 Head and Shoulder, Double Top and Double Bottom Chart Pattems Strategy - FX! xX Head & Shoulders Pattern The head and shoulders pattern is a highly reliable reversal pattem that very often, once completed and confirmed will mark a major turing point in the market. The appearance of the pattem faintly resembles a head and shoulders outline hence the name. The head and shoulders pattern in the standard form is a bearish reversal pattern, The bullish sibling is called an inverted head ‘and shoulders pattern For trading the pattem in the Forex market the implications, rules, and strategies work exactly the same for both the bullish and the bearish versions of the pattern, 0 everything can be used interchangeably only, of course in the opposite direction. The head and shoulders pattern is formed by three consecutive highs with the ‘middle one being the highest of the , hence the resemblance of a head. The highs fon each side of the head resemble two shoulders. Entry rules: 1. Identify @ head and shoulders pattern as described, 2. Draw the neckline by connecting the 2 lows of the head and projecting the line to the right. Note: The right low of the head must be higher or at least equal to the left low (the neckline must be sloping upwards or at least be horizontal, but it can't be sloping down). 3, Wait fora break of the neckline with a close below it 4, Enter after the breakout with a close of the breakout candle. Do not enter on a breakout without at least waiting for a close below the neckline. A high number of potential head and shoulders pattems often will be broken only fori to be a fake breakout in the end. When price closes the trading session past the neckline i's an adaltional confirmation that i's a true breakout Initial Stop-Loss placement: ‘+ Behind the right shoulder (this isthe ultimate stop out level), ‘Cookie Ply pt BROKER CarpitalX? AXIORY Letus lead you to stable profits! 100% for FREE! Explore our profitable trades! Categories Al Financial Markets History Forex Basies Forex Brokers Forex Copy Trading Forex Education Forex Indicators Forex Investing Forex Money Management Forex Psychology Tradino FX Signals! FREE Access >> hps:wwvadingrovolution comtforex-blogheat-and-shoulder-double-op-ane:-double-botiom-chart-paltems-stratogy ant41122018 Head and Shoulder, Double Top and Double Bottom Chart Pattems Strategy -FXT ‘ HOME PROFIT TRADES —TOPINDICATORS «BEST SYSTEMS NEWS. oyeeme MetaTrader 4 Tutorials, Price Action Stock Trading Successful Forex Traders Technical Analysis Trading Software Just search any topie Havent fauna what youre ooking for? Contact ust, ‘Ahead and shoulders on a USDUPY *5 minute chart, Trade management Rss Feed Price should not retum and close back above the neckline of the head and shoulders pattem. If that happens the trade should be closed because the pattern is invalid under those conditions. Note, however, that price can come back to the neckline, retest it and even trade above it during the session, but it should not close above the neckline Here's an example of an inverted head and shoulders pattern. All the rules, entry points, stop levels and targets can just be mirored from the classic head and shoulders. | Iv Ol M | ee ‘se 1) A neo ‘Cookie Ply pt FX Signals! FREE Access >> hps:wwvadingrovolution comtforex-blogheat-and-shoulder-double-op-ane:-double-botiom-chart-paltems-stratogy att41122018 Head and Shoulder, Double Top and Double Bottom Chart Pattems Strategy -FXT ‘ xX target that could stop price from reaching it Double Top and Double Bottom Pattern The double bottom in the bullish case and the double top in the bearish caso aro classical reversal pattems that can offen signal a significant shift in market sentiment, especially when the pattern occurs on a spike in volume and volatilty. The pattem is formed by two consecutive equal highs for the double top and two consecutive equal lows for the double bottom patter, This pattern also uses a neckline which in a double top is the horizontal line projected from the low (lowest point) between the two tops to the right on the chart. In a double bottom pattern, the neckline is taken from the high (highest point) between the two bottoms and projected to the right of the chart The rules, entry, stop out and target calculating principles work the same for both the bullish double bottom and the bearish double top pattems. ‘As with most chart patterns, the double top and bottom can be traded with a riskier higher return approach and a more conservative — lower reward approach. Entry rule 41, Identify a double bottom, 2. Enter at the low of the second bottom on a reversal candlestick pattern on lower timeframes (riskier approach. 3, Wait for the double bottom to be fully confirmed and the neckline to be broken to the upside before entering (conservative approach) Initial Stop-Loss placoment: 1, Below the second bottom. 2. Or below the most recent swing low (fora tighter stop but also more likely to be taken out). his site uses cookies to parsonatze you experience, enalyze sie usage, a lord promotons. Cookie Poy Rem me tte " FX Signals! FREE Access >> hps:wwvadingrovolution comtforex-blogheat-and-shoulder-double-op-ane:-double-botiom-chart-paltems-stratogy amProfit targets: + Note that key support why it's necessary to S can be seen, everything only in the other direction,41122018 Head and Shoulder, Double Top and Double Bottom Chart Pattems Strategy -FXT ‘ xX A Brief Guide to Forex Strategies negotiated hate, and og pat ofthat huge cake, we must velop sraegles hap us acneve t.you a ts ‘Must Read Forex Trading Books hte Forex wr thar are many resources o rad an Iam om bt or many vera books aa where they ak agar arany Ing, whch ‘Simple And Robust Ethereum Strategy: Trading The Second Crypto Giant ‘Thete erent many cyptoearences ata as famous as Etereum, Even mare so, ‘nae’ an even smal pocurencas which may arn te of 39g perro Bie, Hower, he Ethereom Project one at has topped the mart ‘cei inogpon tank is many nova ter a" comments OComments —FXTradingRevolution @ Login ~ Recommend —Y twoss Fhe Sort by Bost = @ startne discussion. = OG IN wr ‘on s16N UP wiTk orscUs (2) Name Be the first to comment, Ssunseibe © Add bisqus to your senda Disusnss viscue Prvncy PoteyPvacy PoeyPrvacy his site uses cookies to parsonatze you experience, enalyze sie usage, a lores prometons. 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