Good day forex traders.

Welcome to another forex education article. Today we will touch on a popular technical analysis chart pattern, the head and shoulders.

The head and shoulders is a trend reversal indicator and many believes that this is one of the more reliable pattern.

Looking at the chart above, we can see the characteristics as follows:

An attempt to drive bullish momentum known as the left shoulder
Another drive of bullish momentum that succeeds in extending the price further up. This is known as the head
A last bullish attempt which fails, resulting in a lower peak and then a drop below the neckline

Typical targets include the distance between the neckline and the highest peak ( the head ).

Trade safely.

Head over to the Koala Forex Training College for more forex related articles!

Invest In Yourself And Get Premium Analysis

Less than 20 cents a day
Major Currency Pairs Analysis
Forex Sentiment Analysis
Understand The Market
10 days money back guarantee

Would you like to connect?

Get notifications on new forecasts and articles.

Head and Shoulders Chart Pattern

Trending Forex Articles