Shoulder head shoulder

Shoulder head shoulder

The graphical shoulder-head shoulder pattern is also a trend-changing pattern. It is formed by a peak (shoulder) followed by a higher peak (head) and then another peak lower than the latter (shoulder). The level of support is plotted by connecting the lower two points of the shoulders. The slope of this line can go both downward and upward.

[caption id="attachment_746" align="aligncenter" width="496"] Shoulder head shoulder[/caption]

In this example above, we can clearly see a pattern of shoulder – head – shoulder. The head is the second peak and the highest point of the graph. The two shoulders also form beaks but do not exceed the height of the head.

With this training, we seek to place an order below the support. We can also calculate the movement of the market by measuring the distance from the highest point of the head to the stand. This distance is roughly as far as the price comes at first after breaking the stand.

[caption id="attachment_747" align="aligncenter" width="500"] Shoulder head shoulder[/caption]

You can see how once the price is under the bracket and makes a move that is similar to the distance between the highest point of the head and the bracket.

NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.