Videos

Stock Market Charts: Head and Shoulders Pattern

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

See All Our Trading Courses

📚 STOCK TRADING BOOKS:

Our Stock Trading Books

⚽ GET PRIVATE COACHING

Coaching for Stock Traders

🌐 WEBSITES:

Home Version 2.0

Home Page

Homepage 2.0

Home

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/
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!