![\"head](\"https:\/\/www.mytradingland.com\/uni\/wp-content\/uploads\/2024\/08\/head-shoulders-pattern.png\")
<\/p>\nThe Head & Shoulders price pattern can form on any type of trading chart (Candlestick Chart, Line Chart, Area Chart etc.)<\/p>\n
A Head & Shoulders pattern is an indication of a trend reversal and when formed in an upward trend it means a downward trend is coming. <\/p>\n
<\/p>\n
The Head (H) is always the tallest of the three peaks while both shoulders (S) may be roughly same height. The Neck is a common support line where the Head & two shoulders must sit on. <\/p>\n
The Neck must not be a straight line as it can slant but the important thing is that the Head & shoulders must sit or rest on the Neck. <\/p>\n
When price breaks through the neck line, its an indication to sell and you could place your stop loss near the right shoulder.<\/p>\n
When formed in a downward trend, the Head & Shoulders pattern forms upside down<\/p>\n
The attributes remain the same but it forms below the Neck line & not above it. <\/p>\n
A head & Shoulders pattern that forms in a downward trend indicates that an upward trend is coming<\/p>\n
![\"inverted](\"https:\/\/www.mytradingland.com\/uni\/wp-content\/uploads\/2024\/08\/inverted-head-shoulders-pattern.png\")
<\/p>\n
When formed in a downward trend, the Head & Shoulders pattern forms upside down<\/p>\n
The attributes remain the same but it forms below the Neck line & not above it. <\/p>\n
A head & Shoulders pattern that forms in a downward trend indicates that an upward trend is coming<\/p>\n
When you spot an inverted Head & Shoulder pattern in a down trend, you can place a buy order while setting your stop loss below the neck(near the shoulder). <\/p>\n
![\"\"](\"https:\/\/www.mytradingland.com\/uni\/wp-content\/uploads\/2024\/08\/doube-top.png\")
<\/p>\n
The Doube Top Pattern forms in an upward trend only and it usually indicated a trend reversal. So, when spotted in an upward trend, expect a reversal to a downward trend<\/p>\n
![\"\"](\"https:\/\/www.mytradingland.com\/uni\/wp-content\/uploads\/2024\/08\/double-top-pattern-forex.png\")
<\/p>\n
A Double Top chart pattern is made up of two peaks\/tops that reach almost the same height and both sit on the same horizontal neck line<\/p>\n
When price breaks through the neckline, it is an indication to sell or short the market while setting your stop loss above the neckline close to the top\/peak<\/p>\n
![\"\"](\"https:\/\/www.mytradingland.com\/uni\/wp-content\/uploads\/2024\/08\/double-bottom-forex-pattern.png\")
<\/p>\n
A Double Bottom only forms in a downward trend & is the reverse\/inverse of a Double Top pattern and it forms below the neck line.<\/p>\n
When you spot a Double Bottom it means a reversal to an upward trend is imminent so you can place a buy order & place your stop loss below the neck line.<\/p>\n
![\"\"](\"https:\/\/www.mytradingland.com\/uni\/wp-content\/uploads\/2024\/08\/cup-handle-forex-pattern-1.png\")
<\/p>\n
The Cup & Handle pattern appears in a downward trend only & when its spotted it means a reversal to an upward trend is imminent. <\/p>\n
The Cup & Handle Pattern looks like a teacup & has a rounded bottom, with a horizontal handle.<\/p>\n
![\"\"](\"https:\/\/www.mytradingland.com\/uni\/wp-content\/uploads\/2024\/08\/symmetric-triangle-pattern-forex.png\")
<\/p>\n
Sometimes an ongoing trend can pause and start moving sideways and you get confused as to whether the trend will continue. This is where the triangle patterns come in handy.<\/p>\n
Triangle patterns are usually a sign of trend continuation and they show you that the primary trend will still continue after moving sideways.<\/p>\n
The Symmetrical Triangle is one of such triangle patterns & it can form in either an upward or downward trend.<\/p>\n
To identify a Symmetric Triangle Pattern, you draw a line connecting the highest price reached at the pause of the trend with the highest price reached during the sideways trend or retracement.<\/p>\n
You also draw a line connecting the lowest price reached during the sideways trend or retracement, to the other line you drew and this forma a triangle.<\/p>\n
The takeaway here is that when you spot a symmetric triangle during a trend, the chances are high that the trend (upward or downward) is going to continue.<\/p>\n","protected":false},"excerpt":{"rendered":"
Head & Shoulders Pattern The Head & Shoulders price pattern can form on any type of trading chart (Candlestick Chart, Line Chart, Area Chart etc.) A Head & Shoulders pattern is an indication of a trend reversal and when formed in an upward trend it means a downward trend is coming. The Head (H) is […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-625","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\n