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Neckline

Double Top Chart PatternThe Double Top or Bottom Chart Pattern is a reversal pattern as its name implies, the pattern is made up of two consecutive peaks or troughs that are roughly equal, with a moderate trough or peak in-between. This reversal could signal an end of an uptrend or downtrend. ( Double top with an end to an uptrend in this case). Double Top Chart Pattern A Double Top chart pattern is comprised of three main components: After a long bullish trend , the price reaches the highest point of the current uptrend After the highest point, there is a decline in price getting support from the support line After this trough the price again increases and reaches another peak falling to the same support line The long bullish trend is the prior trend which is reversed once the pattern is completed, with reaching the highest point of the current trend marking the 1st peak followed by a trough which gets support from the support line i.e. the neckline. Later the price further increases to reach the 2nd peak which gets resistance from the resistance line of 1st peak (usually). Once the price falls and breaks the neckline the formation is complete. The target price for the same is taken as the difference between the neckline and the 2nd peak, with the neckline acting as resistance after the pattern completion. Volume is a confirmatory indication that increases substantially as the breakout is observed and confirms the double top pattern completion! There are few limitations as well to the Double Top Pattern: Can be extremely harmful if identified incorrectly Sometimes the peaks or the trough could be just normal resistance than long-lasting change Might get converted to Triple top, so pay attention to the volume carefully Therefore, one must be extremely careful and patient before jumping to conclusions. Go Trading!!! Further, there are four different types of Double Top pattern based on their respective average rises and failure rate percentage, namely: Adam-Adam; Adam-Eve; Eve-Eve, and Eve-Adam. Where the average is the measure of the price movement from the breakout point to the prime point i.e. 1st peak or the Ultimate high. ---------------------------------------------------------------------------------------- If you find the post useful, please like and share our ideas with the community! - Mudrex
COINBASE:BTCUSDEducation
by Mudrex
6
FCPO TRADING: 143) A POSSIBLE DEEP BULLISH GARTLEY PATTERNhi, this is haidojo trading and the number is 143...consolidation breeds advanced patterns...likewise, now we might face a possible deep bullish gartley pattern...it is compatible with the formation of the "neckline" in my previous analyst...don't aim high on this one...even if it works, it will just rise back mildly...not that kind you wanto hold for swing trade...nor mid-term period... for the bullish gartley pattern, buying range frm 2650-2560...Stop-loss below that range...tp 2685...no extended target... higher resistance : 2750 immediate resistance : 2710 lower support : 2560-2605 the possible neckline for "head-and-shoulder" WARNING! RISK DISCLAIMER : this is juz a trading idea...trading stocks, futures or forex might incur a huge risk to your account/funds… DON’T LOSE MONEY THAT YOU CANNOT AFFORD …any idea(s) of trading in this episode SHALL NOT be regarded as a hint of BUYING or SELLING. It is MERELY a trading journal and it has been used for educational purpose only… trade at your own risk! **your "LIKE" and "FOLLOW" are my main source of motivation to continue posting more valuable contents...TQ**
MYX:FCPO1!Long
by HAIDOJO_trading
Inverse Head and Shoulder Pattern using BTCUSDThe head and shoulders chart pattern is a price reversal pattern that helps traders identify when a reversal may be underway after a trend is exhausted. It is of two types: Head & Shoulder and Inverse Head & Shoulder. This reversal could signal an end of an uptrend or downtrend. (Inverse Head & Shoulder with an end to downtrend in this case) Inverse Head & Shoulder: An inverse head & shoulder pattern is comprised of three main components: -After a long bearish trend, the price falls to a trough and subsequently rises to a peak -The price again falls to form a second trough substantially below the initial low and rises again to the same peak -The price falls for the third time but to the level of the first trough only before rising back to the same peak again In this chart pattern there are three trough in which a large trough (the head i.e. the second trough) has a slightly smaller trough on either side of it (right and left shoulder that are the first and third peak), with all of the trough increasing to a same level of resistance i.e. the peak until where all the troughs had risen, called as neckline in the pattern. Once the third trough (right shoulder) moves back to neckline it is likely to breakout to a bullish uptrend indicating a trend reversal hereby, which is the basic explanation of Head and Shoulder. Traders can use Inverse head and shoulder to buy when the breakout is observed i.e. at the neckline after the right shoulder reached there completing the Inverse Head & Shoulder formation. For confirmation traders can use the drop in volume as the Inverse Head & Shoulder is forming and a sudden increase in the volume as breakout is observed suggesting a shift from sellers before the pattern to buyers after the pattern. There are few limitations as well to the Head & Shoulder Pattern: -Sometimes false breakouts might be observed -The time duration for formation of the pattern might be too long -Trough or peak might be pretty far from the neckline resulting in large stop loss distances which might have o reviewed consistently -The price may see pullback after the third peak or trough often confusing few traders ---------------------------------------------------------------------------------------- If you find the post useful, please like and share our ideas with the community! - Mudrex
COINBASE:BTCUSDEducation
by Mudrex
12
FCPO TRADING : 139) RIGHT-SHOULDER OF HEAD-AND-SHOULDERthis is the 1st day of the new fcpo-nov... hi, this is haidojo trading and the number is 139... well, what has happened today is the price tested 2710 and slided down...next level it might go to the "neckline" 2560-2605...a break lower than this level indicates that a lower-low has formed...trend has changed to downtrend... resistance : 2780-2810 immediate resistance : 2710 lower support : 2560-2605 the possible neckline for "head-and-shoulder" WARNING! RISK DISCLAIMER : this is juz a trading idea...trading stocks, futures or forex might incur a huge risk to your account/funds… DON’T LOSE MONEY THAT YOU CANNOT AFFORD …any idea(s) of trading in this episode SHALL NOT be regarded as a hint of BUYING or SELLING . It is MERELY a trading journal and it has been used for educational purpose only… trade at your own risk! **your "LIKE" and "FOLLOW" are my main source of motivation to continue posting more valuable contents...TQ**
MYX:FCPO1!Short
by HAIDOJO_trading
FCPO TRADING : 137) the last day of the fcpo-octhi, this is haidojo trading and the number is 137... see what is going on the next week...if the price will retest higher level at 2780-2810 the "head" and "left-shoulder"... or retraces back to the "neckline" at 2560 - 2605... resistance : 2780-2810 immediate resistance : 2710 lower support : 2560-2605 the possible neckline for "head-and-shoulder" WARNING! RISK DISCLAIMER : this is juz a trading idea...trading stocks, futures or forex might incur a huge risk to your account/funds… DON’T LOSE MONEY THAT YOU CANNOT AFFORD …any idea(s) of trading in this episode SHALL NOT be regarded as a hint of BUYING or SELLING . It is MERELY a trading journal and it has been used for educational purpose only… trade at your own risk! **your "LIKE" and "FOLLOW" are my main source of motivation to continue posting more valuable contents...TQ**
MYX:FCPO1!
by HAIDOJO_trading
1
USDCHF Trade Analysis for Long PositionUSDCHF Trade Analysis for Long Position Inverted Head and Shoulder form at recent support zone 0.93939 - 0.93754 Price break above neckline and go higher Neckline zone 0.94303 - 094176 Wait for price pullback to neck line zone and Bullish Rejection candle form and enter long position Disclaimer The content on this trade analysis is subject to change at any time without notice. Any information provided here is only the personal opinion of the author. This information is intended for educational purposes.
Long
by JaceFX