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Invertedheadandshoulders

Potential Inverted H&S - GJHere I have GBP/JPY on the 4Hr Chart!! Price has given us 2 Lows both returning to a very clear Resistance Area! This price action could possibly be outlining a very strong reversal known as an Inverted Head & Shoulders Chart Pattern!! Now with the Lower Low or "Head" being followed by Higher Low or "Right Shoulder", this Price Action signifies that price no longer wants to continue Lower and wants to make HIGHER HIGHS!! What we are waiting to see is for price to retest the "Neckline" one last time for a 3rd Touch before giving us a BULLISH BREAK to continue HIGHER!! Strengthening my BULLISH BIAS is the Bullish Divergence on the RSI indicator showing price, after being HEAVILY Oversold Dec. 7th, wanting to reverse in the opposite direction. Fundamentally, this week GBP - "Clear" JPY - "Clear" **Chart Patterns are known to fail 1/3 of the time so BEWARE OF FALSE BREAKS!! -Pattern Prediction- *If Price Breaks and Closes below 179.783, Pattern INVALIDATED! *If Price Breaks and Closes above 184.065, Pattern CONFIRMED! **Price Action after Confirmation of Pattern will initiate my Trade Action Plan!
Long
by Novi_Fibonacci
Learn to identify some useful Chart patterns, Merry Christmas🎄 Unlocking the Secrets of Chart Patterns: Navigating Market Trends 📈 Season's Greetings to all our readers! As we celebrate the spirit of the holidays, let's delve into the fascinating world of financial markets. In our journey to understand and navigate the complexities of trading and investing, we've touched upon essential chart patterns that can serve as invaluable guides for market enthusiasts. In the midst of the festive cheer, let's revisit some of these powerful indicators: the Double Bottom, Flag and Pole, Bullish Pennant, Rising Wedge, Falling Wedge, Triple Top, and Inverted Head and Shoulders. Understanding these patterns can be akin to unwrapping gifts of insight into potential market movements. So, grab a cup of cocoa, settle into your favorite chair, and join us as we explore the significance of these chart patterns and share practical tips on incorporating stop-loss strategies to enhance your trading toolkit. Wishing you a Merry Christmas filled with joy, warmth, and prosperous insights in the financial markets! 🎅🎁🚀 Double Bottom: Description: Imagine a smiley face turned upside down. A double bottom is a chart pattern that looks like two rounded troughs (bottoms) next to each other. Interpretation: Indicates a possible reversal of a downtrend. The price has tried to go down twice but failed, suggesting a potential upward movement. Stop-Loss Tip: One can place a stop-loss slightly below the lowest point of the double bottom. If the price falls below this level, it may invalidate the pattern. Flag and Pole: Description: Think of a flag on a flagpole. The "pole" is a strong, quick price movement, and the "flag" is a rectangular-shaped consolidation pattern. Interpretation: The flag and pole pattern often signals a continuation of the previous trend. The flag represents a brief pause before the price resumes its original direction. Stop-Loss Tip: One should set a stop-loss just below the lower end of the flag. If the price drops below this level, it might suggest a reversal of the trend. Bullish Pennant: Description: Similar to the flag and pole but with a small symmetrical triangle (pennant) instead of a rectangle. Interpretation: Indicates a temporary consolidation after a strong upward movement. It suggests that the bullish trend might continue after the brief pause. Stop-Loss Tip: Place a stop-loss under the lower trendline of the pennant. A break below this line could signal a potential trend reversal. Rising Wedge: Description: Picture a triangle with its top side steeper than the bottom side. The price makes higher highs and higher lows but in a narrowing range, with indicator making Lower Highs (Bearish Divergences). Interpretation: This pattern can indicate a potential reversal to the downside. It suggests that the buying interest is weakening, and the price may soon decline. Stop-Loss Tip: Place a stop-loss just above the last price swing high of the wedge. If the price drops below this line, it may suggest a potential reversal. Falling Wedge: Description: Similar to the rising wedge but inverted. The top side is less steep than the bottom side. Interpretation: Represents a potential reversal to the upside. It suggests that selling pressure is weakening, and the price may be ready to move higher. Stop-Loss Tip: Place a stop-loss just below the last price swing low of the wedge. If the price drops below this line, it may suggest a potential reversal. Triple Top: Description: Visualize a horizontal line touching the tops of three consecutive peaks. Interpretation : Indicates a possible reversal of an uptrend. The price has failed to break above a certain level three times, suggesting a potential downturn. Stop-Loss Tip: One should set a stop-loss slightly above the highest point of the triple top. If the price rises above this level, it may negate the pattern. Inverted Head and Shoulders: Description: Picture three troughs, where the middle one (head) is lower than the two on either side (shoulders). Interpretation: This pattern suggests a potential reversal from a downtrend to an uptrend. It signifies a shift in momentum from bearish to bullish. Stop-Loss Tip: One should place a stop-loss just below the neckline (the line connecting the highs of the pattern). If the price falls below this line, it might indicate a failed reversal. I am not Sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Hope this post is helpful to community Thanks RK💕 Disclaimer and Risk Warning. The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
NSE:NIFTYEducation
by RK_Chaarts
49
Overbought - Pull back for rocket launch to $70 in the LTNASDAQ:AFRM should def be on your watch list going into 2024. To keep my analysis simple, we can see a major inverted head and shoulder forming with an approach to the neckline after completing the head. We can see a high probability of a rejection at this neckline due to the RSI showing overbought on the daily/weekly. I wouldnt short the neckline due to the high momentum the overall markets have experienced, we can still run higher in this overbought scenario. 2 possible scenario ill look at. Entry long on the bottom of the right shoulder with candlestick confirmation/volume with a target of the neckline. Second, Entry long break of the neckline with volume (Can wait for retest for entry) and stop loss at the bottom of right shoulder.. target $70 with TP at $50 and $60. Target could be reached in 1-3 months or sooner. Not financial advise, pure speculation. Use proper risk management.
NASDAQ:AFRMLong
by ThornhillHQ
5
Trade set-up_OFSS can give a breakout and rally 10% thereafter!The stock has been attempting to move beyond the INR4200 mark since September 2023 but its every attempt in past was met with some strong supply around the 4200-4250 zone preventing it from moving beyond. In this ongoing tussle between the buyers and sellers in the past three months the stock made at least 3 attempts to breakout above 4200 and the very same 3 attempts of the stocks are now clearly visible on the chart as an "Inverted Head &shoulders" pattern. The neckline of the pattern stands at the same old supply zone of 4200-4250. On decisive close above the 4200 mark and also upon breaking out from the inverted H&S pattern the stock can rally nearly 10% towards the INR 4600 region. CMP - 4166 SL - 4078(2.4%) TARGET - 4600(10%) RR - 1:4
NSE:OFSSLong
by neeraj_2_sharma
Possible Channel Break Re-testsA quick look at how Bitcoin could drop as low as 25-26k or even 22-23 and remain bullish. Bitcoin first broke above an inverted HS, which ultimately led to a parallel channel breakout on the weekly chart. We haven't yet re-tested the top of that channel. A re-test doesn't always occur, but if it does a re-test at 25-26k is easily still bullish and remains above both pattern breaks. There's also the possibility of a pullback below the inverted HS that still remains above the channel if a re-test occurs but gets dragged out for weeks. A prolonged re-test could pullback below the inverted HS, yet remain above the parallel channel, going as low as 22-23k or even lower (below 20k) if it is prolonged further.
INDEX:BTCUSDLong
by dudebruhwhoa
Pullback scenarios for longI see two scenario playing out for a long term bullish trade. Bias: Bullish Why: Neckline breakout of inverted head & shoulders with a positive earning gap. Scenario A: Price action is currently showing a bullish flag after the huge earnings gap up. We can see price retrace to test the end of the gap. With a high possibility of bouncing and breaking the bull flag structure to a new high. Note: 12/8 ended with a green volume day above average breaking the latest downtrend volume structure. RSI is still show PDD in an overbought scenario, most severe since Aug/Sep 2019'. MACD is turning to a SELL signal at the top of the indicator. Given the indication for a dire pull back... Scenario B: Price action retraces to fill gap, bouncing to retrace back to the I-H&S neckline or 200 EMA before a rocket launch to $170 price target. Thoughts? Pure speculation. Trade responsibly.
NASDAQ:PDDLong
by ThornhillHQ
Inverted Head & Shoulders - UCHFHere we have USD/CHF on the 30 Min Chart! It looks to be outlining a potential Inverted Head and Shoulders Pattern upcoming!! The First Low or "Shoulder" @ .86792 followed by the Lower Low or "Head @ .86662 with price moving back up to the Confirmation of Pattern or "Neckline" @ .86973 makes me believe we will get a BREAK of Confirmation @ the 3rd touch of the Neckline with price continuing HIGHER! The RSI indicator is also throwing out a Slight Divergence, strengthening Bullish Bias on this possibly imminent Reversal Pattern! Fundamentally this week: USD - JOLTS (Tues) Non-Farm Payroll (Wed) Unemployment Claims (Thur) Non-Farm and Unemployment (Fri) CHF - CPI (Mon) Currency Reserve (Thur) **Chart Patterns are known to fail 1/3 of the time so BEWARE OF FALSE BREAKS!! -Pattern Prediction- *If Price Breaks and Closes below .86792, Pattern INVALIDATED! *If Price Breaks and Closes above .86973, Price Action will initiate my Trade Action Plan!
Long
by Novi_Fibonacci
EURAUD I Potential upside Hello,Traders! . . . . . EURAUD is trading in an uptrend on the weekly and a downtrend on the daily. 1.6640 structure daily high was recently broken and created a new high at 1.6703. The price has pulled back to the neckline area and showing rejection from 1.6557 support. If this support holds, price will likely continue to the upside to retest 1.6700 zone. LONG! Trade safe and good luck! Like, comment and subscribe to help us grow! Check out other forecasts below too!
Long
by BKTradingAcademy
1
Amazon -> Continuation TradeMy name is Philip, I am a German swing-trader with 4+ years of trading experience and I only focus on price action and market structure 🖥️ I am trading the higher timeframes because this allows me to massively capitalize on the major market swings and cycles without getting caught up in the short term noise. This is how you build real long term wealth! In today's anaylsis I want to take a look at the bigger picture on Amazon. After the recent rejection away from the lower support trendline of the rising channel I do now expect a short term correction back to the $105 level. Then we could see an inverted head and shoulders pattern which indicates more upside potential and eventually new all time highs. - - - - - - - - - - - - - - - - - - - - When the market moves where, and how, and if - these are all unknown. The only thing which you can control is your risk. - Philip Basic Trading - Keep the long term vision🫡
NASDAQ:AMZNLong
by basictradingtv
11
GOLD: If it fails, the bearish trend will return.We already shared our view on daily chart last week (see analysis below), so today we will look for some potential Patterns on intraday chart. Having said that, if we look at the 1H chart, we cannot exclude the formation of Inverted Head and Shoulders, if this fails, the Price Action should trigger a new Low and a return to the bearish trend also on daily chart. Today, we will only think about managing our long position taken last week and we will think about adding position only after some confirmations which we are currently missing. With this in mind, the signal will be confirmed with neckline breakout. DAILY ANALYSIS (Click on Chart below) Trade with care Like | Share | Comment
OANDA:XAUUSDLong
by TheAnonymousBanker
7
ZZD - Long IdeaThe stock has printed an interesting, inverted head and shoulders and its currently rising above the upsloping 20/50 ema's. While bulls hold it above R10.90 , the bull flag is likely to play out but for a longer term horizon, a stop below R10 would be preferable. The pattern targets R16 eventually. The inverse head and shoulders is a technical chart pattern that signals a potential trend reversal from a downward trend to an upward trend in the price of a security or asset 12. It is also called a “head and shoulders bottom” 1. The pattern resembles the shape of a person’s head and two shoulders in an inverted position, with three consistent lows and peaks 12. The pattern is identified when the price action of a security meets the following characteristics 1: The price falls to a trough and then rises. The price falls below the former trough and then rises again. Finally, the price falls again but not as far as the second trough. Once the final trough is made, the price heads upward, toward the resistance found near the top of the previous troughs 1. Investors typically enter into a long position when the price rises above the resistance of the neckline 1. A suitable profit target can be ascertained by measuring the distance between the bottom of the head and the pattern’s neckline and using that same distance to project how far the price may move in the direction of the breakout.
JSE:ZZDLong
by Trader-Dan
Primary Selling Wave 1 May Be Completed; Big Bounce?Pretty strong down moves in a wild ride likely a setup for BTFD, CPI numbers Thursday AM the catalyst for retracement move. Probly don't wanna be short right now. Could tank again if more geopolitical news smacks it down but absent adversity, expect a lift. Any lift will be a countertrend move in a primary downtrend. Likely target is the 0.62 Fibo retracement near 4545. Made inverted H&S intraday Tuesday. Probably good to get into cash if you don't wanna be long. Getting oversold. Can get more so but bears near exhaustion. Be careful!
TVC:SPXLong
by DaddySawbucks
6
Gold -> The 90% Probability SetupHello Traders and Investors , my name is Philip and today I will provide a free and educational multi-timeframe technical analysis of Gold 💪 After the simpe monthly break and retest and also a retest of the 0.382 monthly fibonacci retracement Gold perfectly created the bullish continuation towards the upside and I do expect new all time highs on Gold in 2023. Gold is also retesting the weekly support trendline of the very obvious rising channel and in confluence with bullish moving averages I do expect a bullish push from here. Looking at the daily timeframe you can either be agressive and enter a position right now or you can wait for the confirmed inverted head and shoulders and a breakout of the daily bullflag and then this will be a very high probability setup overall. Keep in mind: Don't get caught up in short term moves and always look at the long term picture; building wealth is a marathon and not a quick sprint📈 Thank you for watching and I will see you tomorrow! My previous analysis of this asset:
FXOPEN:XAUUSDLong
by basictradingtv
46