Head and Shoulders Flashcards
Major Reversal with a Head and Shoulders Top or Bottom
Major Reversal with a Head and Shoulders Top or Bottom
What type of MTR is a Head and Shoulders Bottom(HSB)?
It is a Type of HL MTR
What is needed for a HSB?
- a Rally break above the bear trend line (moves above bear channel with a clean rally)
- Bear trend resumes down
- Instead of new low, reverses up again. This time from HL (Right Shoulder)
Some MTR Bulls will early buy the Reversal up from LL MTR which is the Head of the HSB as they’re anticipating a HL Right shoulder.
Some MTR Bulls will early buy the Reversal up from LL MTR which is the Head of the HSB as they’re anticipating a HL Right shoulder.
What is needed for a HST?
- Selloff needs to break below bull TL(moves below bull channel)
- Bull Trend Resumes up - Instead of New High, the market reverses down again & this time it is from a LH (right shoulder)
HST: HH MTR, & Often a LH MTR
HST: HH MTR, & Often a LH MTR
Head & Shoulders Patterns are common if a Trader knows what to look for
Head & Shoulders Patterns are common if a Trader knows what to look for
The chance of a big profit at a Head & Shoulders MTR is minor unless there is a break beyond a MAJOR CHANNEL/TL. If still in Channel chances of the HST(B) reversals are minor
The chance of a big profit at a Head & Shoulders MTR is minor unless there is a break beyond a MAJOR CHANNEL/TL. If still in Channel chances of the HST(B) reversals are minor
A lot of times when I am taking MTR trades the 1st entry does not go far and I end up scalping out. But if I stick to the premise I can get a very good swing trade
A lot of times when I am taking MTR trades the 1st entry does not go far and I end up scalping out. But if I stick to the premise I can get a very good swing trade
For a Head and Shoulders Top MTR, what do the Bears need?
The BEARS need a STRONG Break Below the BULL TL
Whenever there is a MTR there is usually MANY reasons to SELL
Whenever there is a MTR there is usually MANY reasons to SELL
Most Reversal Patterns are TR simply because the markets have inertia and there is some sort of transition phase before a Trend Changes (new market cycle) Therefore in this transition the market resists change and is in a TR before the possible market transition
Most Reversal Patterns are TR simply because the markets have inertia and there is some sort of transition phase before a Trend Changes (new market cycle) Therefore in this transition the market resists change and is in a TR before the possible market transition
They’re 3 ways to draw the Neck Line in a HST(B)
They’re 3 ways to draw the Neck Line in a HST(B)
Markets Resist Change - Often need 2nd or 3rd Attempt before successful MTR Break
Markets Resist Change - Often need 2nd or 3rd Attempt before successful MTR Break
With a HST being a TR - there is ALWAYS both Bull and Bear Setups as the market is in a TR
With a HST being a TR - there is ALWAYS both Bull and Bear Setups as the market is in a TR
Anytime the market tries to do something 3 times and FAILS; Traders than expect the market to do the opposite
Anytime the market tries to do something 3 times and FAILS; Traders than expect the market to do the opposite
If the Stop os hit what are the odds of a Trend Resumption
The odds are a 50% chance of a Trend Resumption
If Stop is Hit - 50% Chance of a Trend Resumption or Reversal (this is all dependant upon market cycle conditions)
If Stop is Hit - 50% Chance of a Trend Resumption or Reversal (this is all dependant upon market cycle conditions)
What do the Bulls see in every HST?
The Bulls see a Bull Flag
Below the Right Shoulder of a HSB who will Sell?
Both the Bulls and Bears will SELL (see chart below for explanation)
HSB is a TR - Therefore there is always both Bull and Bear Setups
HSB is a TR - Therefore there is always both Bull and Bear Setups
