Introduction
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Major Reversal Patterns
The Head And Shoulders Pattern Rules
The head and shoulders patterns strategy are the most profitable at any time only we should remember some important point at the execution of the head and shoulders pattern rules. These rules are very common to all Reversal Patterns that is
Rule.1: Always remember that at the time of pattern breakout the Volume must be greater than the previous some candle.
Rule.2: Always take the trade at the breaking of the important trend lines.
Rule.3: Always remember that larger patterns are more powerful than smaller patterns.
Rule.4: The Top is more volatile than the Bottom
The Head And Shoulder Reversal Patterns
The Head And Shoulders Pattern is always formed in the uptrend and it's reverse the trend in a downtrend. If I compare all the reversal patterns the head and shoulders pattern is a more reliable pattern. This is the king of the major reversal patterns.
To understand the head and shoulders reversal pattern you must know about Trend Line: Basic To Advance Prize Action(How To Use Trend Line). If you read before, you know that the uptrend trend reverses into a downtrend when the uptrend line is broken and taken resistance on the uptrend line then the trend is reversed into a downtrend.
There is the point to notice that before breaking of trend line it makes the higher high. Those two higher high the first is left shoulder and the second is the Head. Another lower high is formed after breaking of the trend line. This is the complete head and shoulders patterns.
When I sell in head and shoulders reversal pattern?
Head And Shoulders Pattern Time Frame
Head And Shoulders Pattern Stop Loss
Head And Shoulders Pattern Target
The Inverse Head And Shoulders Pattern Rules
The inverse head and shoulders patterns strategy is also a very profitable strategy for any trading style. But always we must remember some important things at the execution of the inverse head and shoulders pattern rules. These rules are very common to all Reversal Patterns that is
Rule.1: Always remember that at the time of pattern breakout the Volume must be greater than the previous some candle.
Rule.2: Always take the trade at the breaking of important trend lines.
Rule.3: Always remember that larger patterns are more powerful than smaller patterns.
Rule.4: The Top is more volatile than the Bottom.
The Inverse Head And Shoulder Reversal Patterns
The Inverse Head And Shoulders Pattern is always formed in the downtrend and it's reverse the trend in an uptrend. If I compare all the reversal patterns the inverse head and shoulders pattern is a more reliable pattern. This is the king of the major reversal patterns.
To understand the inverse head and shoulders reversal pattern you must know about Trend Line: Basic To Advance Prize Action(How To Use Trend Line). If you read before, you know that the downtrend reverses into an uptrend when the downtrend line is broken and taken support on the downtrend line then the trend is reversed into an uptrend.
There is a point to notice that before the breakout of the trend line it makes the lower low. That two lower lows. The first is the left shoulder and the second is the Head. Another higher low is formed after the breakout of the trend line. This is the complete inverse head and shoulders patterns.
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