Скачать или смотреть Head & Shoulders Pattern on Inox Wind | Weekly Chart

The Head and Shoulders pattern is a classic chart formation in technical analysis, often signaling a reversal in trend direction. It can appear at market tops (signaling a bearish reversal) or at market bottoms (signaling a bullish reversal, known as an inverse head and shoulders).

Structure of the Head and Shoulders Pattern:
The pattern consists of three main peaks or troughs:

Left Shoulder:

Formation: The price rises to a peak and then declines.
This is the first part of the pattern, where the initial bullish momentum pushes the price higher, but then sellers step in, causing a decline.
Head:

Formation: The price rises again, creating a higher peak than the left shoulder, and then falls once more.
This is the highest point in the pattern, and it suggests the strongest buying effort in an uptrend (for a top formation), followed by a sharp decline.
Right Shoulder:

Formation: The price rises again but to a lower peak than the head, and then declines again.
This peak is lower than the head, indicating waning bullish momentum in a head and shoulders top pattern. For the inverse pattern, it's a shallower dip indicating weakening selling pressure.
Neckline:

Definition: The line drawn by connecting the lows (in a head and shoulders top) or the highs (in an inverse head and shoulders) between the left shoulder and the head, and the head and the right shoulder.
This neckline serves as a critical support or resistance level. The pattern is confirmed once the price breaks through the neckline.


#nifty