Stock Market Charts: Head and Shoulders Pattern

Videos
What is the Head and Shoulders Reversal Pattern?
-The stock bounces off of the support line three times, making a head and shoulders pattern
-On the first shoulder, the volume is high
-The volume is lower on the uptrend that creates the head
-People are not voting for the stock to go up. This low volume creates the head
-Important to understand: If the stock bounces and hits the support line again (after the last shoulder), the line becomes a resistance line. You want to make sure it doesn’t bounce down again because that would mean the stock is going below the resistance line.
-A three-month pattern is healthier than a two-day chart pattern

How to Trade On the Pattern:
-Typically, people wait to trade until the stock breaks the neckline region and they trade on the downside (if there is enough volume)

#shoulderspattern #headpattern #stockpatterns #stockcharts #stockmarket

Posted at: https://tradersfly.com/blog/stock-market-head-and-shoulders-pattern/

🔥 GET MY FREEBIES

Freebies

🎤 SUBMIT A VOICE QUESTION

Question – Hungry for Returns

👀 START HERE: FOR NEW TRADERS

Start Here – for New Traders

🎉 START HERE: OPTION TRADERS

Start Here – Option Traders

📈 MY CHARTING TOOLS + BROKERS
https://tradersfly.com/go/tools/

💻 MY COMPUTER EQUIPMENT

Resources: Computer Gear

💌 GET THE NEWSLETTER

YouTube Newsletter Signup

🔒 SEE OUR MEMBERSHIP PLANS
https://tradersfly.com/go/members/

📺 STOCK TRADING COURSES
https://tradersfly.com/go/courses/

📚 STOCK TRADING BOOKS:
https://tradersfly.com/go/books/

⚽ GET PRIVATE COACHING

Coaching for Stock Traders

🌐 WEBSITES:

Home Version 2.0

Home Page

Homepage 2.0


https://mylittlenestegg.com

Home

💌 SOCIAL MEDIA:
https://tradersfly.com/go/twitter/
https://tradersfly.com/go/facebook/

⚡ SUBSCRIBE TO OUR YOUTUBE CHANNEL
https://tradersfly.com/go/sub/

💖 MY YOUTUBE CHANNELS:
TradersFly: https://backstageincome.com/go/youtube-tradersfly/
BackstageIncome: https://backstageincome.com/go/youtube-bsi/

📑 ABOUT TRADERSFLY
TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing.

Stock trading can be a brutal industry, especially if you are new. Watch my free educational training videos to avoid making big mistakes and just to continue to get better.

Stock trading and investing is a long journey – it doesn’t happen overnight. If you are interested to share some insight or contribute to the community we’d love to have you subscribe and join us!

Products You May Like

Articles You May Like

Stock Trading Mistake: When You Are Right, But Still Lose
Stocks to Buy on Lumber Crash
Active Stock Trading Time Zones & Hours

Leave a Reply

Your email address will not be published.