In the article of the month of March, we learned about the ascending triangle pattern. There are a lot of chart patterns that we can learn. But I think that we should only focus on the most profitable chart patterns first. So in this month, I have come up with the very famous Head and Shoulder pattern. I got the idea of talking about Head and Shoulder pattern because I saw it emerging in many of the charts these days and it is very easy to visualize this pattern in the charts. I have included a few charts of April 2018 where this pattern had emerged.
1. ABOUT THE HEAD AND SHOULDER PATTERN
A few facts about the Head and Shoulder pattern:
- It is considered as the reversal pattern.
- It has 4 necessary ingredients.
- The first shoulder,
- The head
- The second shoulder
- The neckline
- Both shoulders should have almost the same height(although not necessary).