EUR/USD Forex Signal: Bearish Head & Shoulders Pattern

r/Stocks Technicals Tuesday - Dec 25, 2018

Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information:
Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:
Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected?
The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.
TA is best used for short term trading, but can also be used for long term.
Intro to technical analysis by Stockcharts chartschool and their article on candlesticks
Terminology
Useful indicators
Methods or Systems
Strategies: See the TA wiki here as this will be a work in progress, feel free to reply with your own strategy.
See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.
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How Head & Shoulders Pattern Work in Forex Trading?

How Head & Shoulders Pattern Work in Forex Trading?
https://preview.redd.it/nu5xmktn38m21.jpg?width=800&format=pjpg&auto=webp&s=e1e9bff480448b8fde579062c5a0159eeb61e0e2

In forex trading, Many Forex traders have made ginormous profits using chart analysis. It is designed to identify the highest probable outcome when the prices follow a certain pattern. Chart analysis has a higher chance of returning you with profits. And every analysis has a theory of the trading trend which makes it quite reliable. Head and shoulders pattern is one of the basic chart analysis methods which has a set of rules to identify the pattern and make profits.
Left Shoulder: When the prices rise to a certain peak and then fall, the peak is known as the left shoulder.
Head: When the prices rise again to an even higher position than the left shoulder and then it falls, the peak is identified as the head.
Right Shoulder: When the stooped price from the head rises to form a peak lower than the head but almost equaling the left shoulder, the right shoulder is formed.
Neck Line: After spotting the left shoulder, head and right shoulder on the chart, the lowest value from the left shoulder is connected to the lowest value at the start of the right shoulder. This simple line is called the neckline. It is crucial to identify the neckline before the trade can be established.
https://preview.redd.it/ht25zvjr38m21.jpg?width=800&format=pjpg&auto=webp&s=b00306e1b79a538c55e05b4cbb3918236de8a1ca
How to Trade the Head & Shoulders Pattern? When the right shoulder hits the neckline is the right time to enter the trade. It is a must for traders to wait for the pattern to get completed as it can go either way even a minute before the completion of the pattern. It suggests that after the prices reach the neckline at the end of the right shoulder, the breakdown occurs. The breakdown is the sudden surge in the rise or fall of the prices.
How head & shoulders work? When the head sees a fall, the traders would have started to sell their positions as it is the highest peak at that time. This leads to less aggressive buying in the market. The traders who entered the right shoulder would have started to sell as the price approaches the neckline. This would further decrease the interest in buying leading to a sudden fall in the prices. Reaching the neckline is when the losing traders experience the pain of heavy losses.
When to get out of the trade? You should get out of the trade when the prices reach a certain position which can be identified by the difference between the highest and lowest of the values in the pattern subtracted from the neckline. It is at this position you can earn a substantial profit with low risk.
Inverted Head & Shoulder: It is also a good position to trade when the head & shoulders pattern is inverted. The left shoulder is formed by the dipping prices and the head is formed after a dip greater than that of the left shoulder. The right shoulder is formed by another ‘V’ in the chart which is less than the head but almost equaling the left shoulder. Here, you add the difference between the highest and lowest value of the pattern to the neckline to determine your closing price.
One last thing to remember: It must have occurred to you that if charts give you the highest probable outcome, why not everyone is using it? And what if everyone follows the chart analysis? Identifying the right scenario where the prices follow the pattern can prove to be challenging and the pattern you identify cannot always be identified by all the traders. What appears to be a pattern for you might not be for the next trader. And there are always those who go by the instinct. So, it is highly unlikely for anyone to experience such scenarios. Trading has its own risks. Using chart analysis doesn’t promise profits every time. It simply gives you the highest probable outcome for the analyzed data. Some traders believe chart analysis to be a lie, while that may be true to some extent as it is impossible to predict the absolute price movements. Sometimes, the market acts differently from the analyzed data. It is your obligation to identify the right trade.
Alfa Financials offers a full suite of the best trading platform for beginners and professional traders. View our customized trader platforms, we are the trusted and experienced regulated online forex brokers for Forex, Futures, CFD and Currency Trading.
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r/Stocks Technicals Tuesday - Nov 27, 2018

Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information:
Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:
Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected?
The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.
TA is best used for short term trading, but can also be used for long term.
Intro to technical analysis by Stockcharts chartschool and their article on candlesticks
Terminology
Useful indicators
Methods or Systems
Strategies: See the TA wiki here as this will be a work in progress, feel free to reply with your own strategy.
See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.
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Deciphering the Diamond Chart Pattern

Deciphering the Diamond Chart Pattern
Diamond Chart Pattern
The diamond chart pattern is one of the reliable chart patterns mostly used by the day traders to identify the potential uptrend reversals. The bearish diamond’s occurrences are far more prevalent than their bullish counterparts. The diamond pattern has enabled a large number of traders to make quick profits.
Forex trading markets, because of their high liquidity, gives way to more diamond formations than any trading counterpart.
Cutting the Diamond Bear An offset head & shoulders formation is chosen for the trend lines to be sketched. The left shoulder and the head are connected through a straight line. The head is then connected to the peak of the right shoulder. This forms the upper boundary of the diamond. The price must not break the boundary for it to remain in the pattern.
For the lower part, the left shoulder is again connected to the trough formed after the head which is then connected to the right shoulder.
Identification: Diamond vs Head & Shoulders It is not hard to get confused with the pattern of head & shoulders and diamond as they mirror each other. The offset nature of the head & shoulders pattern can be identified by the head located closer to the left shoulder and the tail slightly closer to the right. And the neckline will always struggle to be a straight line.
Entry The right time to take the trade is by the completion of the pattern. The breakdown is most likely to happen right after the formation of the diamond, so shorting at the end of the right shoulder could prove to be beneficial.
Exit The safest exit is marked from the right shoulder with the difference in value between the highest Peak and the deepest crevice within the pattern. The diamond pattern’s breakdown has more profit potential than just the difference between the peak and trough, but, more than that is a risk.
Stop-Loss Stop loss is a counter-measure to limit your losses in case of the failure of your analyzed pattern. It is most advised to place the stop loss at the last peak formed before the completion of the diamond.
Bullish Diamond Pattern Bullish diamond chart pattern, also known as the diamond bottom is also an existing pattern which is straight opposite to what we have seen, except for the profit potential. It is used to identify the downtrend reversal, but their formation is scarce when compared to the bearish diamond tops.
For the Bullish diamond pattern, the entry is the same as that of the diamond top, but the exit by the uptrend and the stop loss is placed at the last trough formed inside the pattern.
Before trying the learned chart analysis pattern in real time, use the historic trading charts to check if you can identify the right pattern. Novice traders, because of their overwhelming enthusiasm, often put their knowledge to work before testing it out and incur heavy losses. Learning diamond pattern makes no difference if you don’t practice and hone your skills.
Alfa Financials offers a full suite of the best trading platform for beginners and professional traders. View our customized trader platforms, we are the trusted and experienced regulated online forex brokers for Forex, Futures, CFD and Currency Trading.
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r/Stocks Technicals Tuesday - Dec 11, 2018

Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information:
Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:
Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected?
The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.
TA is best used for short term trading, but can also be used for long term.
Intro to technical analysis by Stockcharts chartschool and their article on candlesticks
Terminology
Useful indicators
Methods or Systems
Strategies: See the TA wiki here as this will be a work in progress, feel free to reply with your own strategy.
See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.
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r/Stocks Technicals Tuesday - Dec 04, 2018

Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information:
Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:
Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected?
The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.
TA is best used for short term trading, but can also be used for long term.
Intro to technical analysis by Stockcharts chartschool and their article on candlesticks
Terminology
Useful indicators
Methods or Systems
Strategies: See the TA wiki here as this will be a work in progress, feel free to reply with your own strategy.
See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.
submitted by AutoModerator to stocks [link] [comments]

r/Stocks Technicals Tuesday - Dec 18, 2018

Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information:
Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:
Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected?
The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.
TA is best used for short term trading, but can also be used for long term.
Intro to technical analysis by Stockcharts chartschool and their article on candlesticks
Terminology
Useful indicators
Methods or Systems
Strategies: See the TA wiki here as this will be a work in progress, feel free to reply with your own strategy.
See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.
submitted by AutoModerator to stocks [link] [comments]

Head And Shoulders Chart Pattern - What Really Works Now HEAD & SHOULDERS Pattern In Forex Trading - YouTube Head and Shoulders Pattern (Trading Strategy) - YouTube How to Trade Head & Shoulder Patterns in Forex - YouTube How to Trade the Head and Shoulders Pattern - YouTube TRADING EDGE 258 - Trading Head & Shoulders Patterns Forex Strategy - Head and Shoulder Pattern (Market ...

Head and Shoulders Pattern. Price Action moves all time and no movement is the same. The following patterns are most common at the charts.Let’s learn how to look at them and how to use and combine their specific rules with other aspects of our technical analysis.. The Head and Shoulders Pattern and Techniques:. This head and shoulders patterns shown is a signal that indicates a certain pair ... The head of the pattern is aggressive both on the downside and the upside move, the neckline is not horizontal (as a matter of fact, you will rarely see a head and shoulders pattern on the Forex market that has a horizontal neckline), and it is retested twice. The retest of the neckline comes with almost 2 weeks of consolidation, and this is enough time to spot the pattern and to position ... The technical picture now is more bearish as support levels have broken down, but even more importantly we see in the price chart below the final shoulder of what looks like a bearish head and shoulders pattern forming, with a neckline at about 1.1767. Therefore, although the U.S. Dollar is still relatively weak, the Euro is also weakening. In forex trading, a “head and shoulders” is known as the trend reversal pattern. Traders use this particular chart pattern to explore the big picture of the market conditions which help them to identify the trade signals. Although, being able to spot the pattern correctly on the live charts plays the most important part. In this article, we’ll briefly discuss the head and shoulders ... Head and Shoulders Pattern in Forex is the most popular chart pattern traded in the market. It forms after an extended uptrend movement with three price peaks at different levels. Therefore, it is a bearish reversal pattern. It is easy to spot on the chart and can form on all time frames. What is a head and shoulders pattern in forex? Head and Shoulders Pattern. Price Action moves all time and no movement is the same. The following patterns are most common at the charts.Let’s learn how to look at them and how to use and combine their specific rules with other aspects of our technical analysis.. The Head and Shoulders Pattern and Techniques:Head and Shoulders Pattern and Techniques: Head and shoulders and of course the inverse head and shoulders are one of the most important patterns to be found when trading and the first thing to consider when meeting such a pattern is the fact that they are reversal pattern.Head and shoulders are to be found after a bullish trend or just before the bullish trend ends and they are signaling exhaustion and the fact that the trend is about ...

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Head And Shoulders Chart Pattern - What Really Works Now

Free Education & Signals: 👉 https://bit.ly/freeroninsignals 👈 Here is a great example today of how to trade a head and shoulders pattern in the most profitab... The Head and Shoulders pattern is one of the most popular chart patterns. However, most traders get it wrong. Here’s why… Just because you spot a Head and Sh... Forex Strategy - Head and Shoulder Pattern (Market Reversal Training) - Duration: 54:38. NYC Trade House 5,945 views. 54:38. HOW TO TRADE - Here's What Day Trading Looks Like - Duration: 29:23 ... The Head and Shoulders pattern is one of the most commonly known price patterns, and most often traded incorrectly. Here are 3 steps to trade it properly. Enjoy the video! Leave your questions and ... In this video,I will show you how a head and shoulders pattern is formed in forex trading, and also show you why it forms. I will also show you a full multi-... NYC Trade House Forex Training - Head and Shoulders Market Reversal Pattern Training About Video... In this video you will learn about one of the most profit... http://goo.gl/oxDBc5 The head and shoulders pattern is one of my favorite reversal patterns found in the Forex market. The pattern occurs after an extended m...

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