Bitcoin Forum

Essentials of technical analysis: “Head and Shoulders” pattern
 
In the dictionary of technical analysis, the term “pattern” means a consistently repeating model on a chart. The ability to recognize patterns allows you to predict further movements of rates, as graphs reflect public sentiments. 
 
>>>“Head and shoulders” is one of the general and most reliable patterns of technical analysis. It looks like 3 peaks with the highest one in the middle.  First and third peaks are shoulders, and the second peak forms the head. The line connecting the first and second troughs is called “the neckline”.
 
>>>Usually “Head and shoulders” predicts a bullish-to-bearish trend reversal. Its psychology is very simple to explain: buyers (bulls) are pushing the price up, it grows and reaches the 1st peak – the “left shoulder”. But at some moment buyers slow down their rush, and the price rolls back to the “neck’s” level. Then new players enter the trade, and the price surges up again, but if buyers are not enough, it rolls back again. Right shoulder is the 3rd and the last one attempt to drive the price up. If it fails, traders lose their faith in further growth, and panic selling begins. When the rate breaks down the neck it sinks deeply down.
 
>>>Head and shoulders patterns can also signal that a downward trend is about to reverse into an upward one. In this case, the price reaches three consecutive lows, separated by temporary rallies. Of these, the second trough is the lowest (the head) and the first and third are slightly shallower (the shoulders). The final rally after the third dip signals that the bearish trend has reversed and prices are likely to keep moving up.
 
                                            <<<<<< I Hope this Pattern is help for all Investors >>>>>>>>>

it is very good pattern for who is understand and if understand the this post very helpful for trading/investment on crypto market

Read that once in a particular group about Cryptocurrency. Having that kind of analysis helps us in a decision making but not in getting a good profit in every traded we made. I believe that trading is not about analysis, but in a matter of timing and on not being greedy. Just don't expect a high profit. Even in a low profit, grab it, that's still a profit.

PS. Well, like what I have said in a comment, on a thread, believe at your own risk.

its seems good and its not easy to get good profits but this post is helpful for planing to investment on market situation thanks