Forex Academy Forex Essentials Head and Shoulders | Head and Shoulders |
|
|
|
|
A pattern resembling two peaks (the shoulders) with a higher peak between the two shoulders (the head). The neckline, or the bottom boundary that both shoulders reach, is regarded as a key point traders can use to enter/exit positions. This is probably the most famous of all chart patterns, but not always the most reliable. When it works it will always be seen as a reversal pattern and consists of four phases.
The first phase is the formation of a small peak (point A which is the left shoulder), retraces and then is followed by more aggressive buying to create the head, which eventually retraces and tests the support (know as the neckline), followed by another attempt at a rally, which does not produce a peak as high as the head (point C). This is then followed by another test of the neckline. |
| < Prev | Next > |
|---|
User Login
Control Panel
Partnership
FX QUOTES
|
|
|||
Search ForexGen
Accounts
Promotions
Visitors Popular Searches
RSS News
- Israeli settlement crisis clouds Mideast talks 9:04 - 19.03.2010
- Healthcare bill to cut deficit: CBO 9:03 - 19.03.2010
- Bomb damages right wing-group's Athens office 9:02 - 19.03.2010
Copyright © 2001 - 2010 Online Forex Trading | ForexGen.com
