Stock Market Charts: Head and Shoulders Pattern
2 min read-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
???? SUBMIT A VOICE QUESTION
???? START HERE: FOR NEW TRADERS
???? START HERE: OPTION TRADERS
???? MY CHARTING TOOLS + BROKERS
???? MY COMPUTER EQUIPMENT
???? GET THE NEWSLETTER
???? SEE OUR MEMBERSHIP PLANS
https://tradersfly.com/go/members/
???? STOCK TRADING COURSES
???? STOCK TRADING BOOKS:
? GET PRIVATE COACHING
???? WEBSITES:
???? 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/
MyLittleNestEgg: https://mylittlenestegg.com/go/youtube/
???? 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!
