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1. Also called a lower swing high trend reversal, a Head and Shoulders pattern
is formed when a security within an uptrend traces a lower swing high than the previous
one.
2. The Head and Shoulders pattern is powerful because the sentiment that
was formerly producing the uptrend is now possibly shifting and buying pressure
is decreasing.
3. Head and Shoulders patterns can be stronger when the price breaks below
the “neckline”, which is a straight line is connecting the swing lows
that created the shoulders.
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