Reversal Metals Chart Patterns: Head and Shoulders & Reverse Head Shoulders
Head and shoulders Metal Chart Pattern
This is a reversal metals trading pattern which forms after an extended Metals upward metal trend. It's made up of three consecutive peaks, the left shoulder, the head and right shoulder with two moderate troughs between the shoulders.
This metals trading pattern is considered complete once metals price penetrates and moves below neck line, which is plotted by connecting these two troughs in between the shoulders.
To go short, Metals traders place their sell stop metals trading orders just below the neck line region.
Summary:
- This Metals pattern forms after an extended move upwards
- This formation indicates that there will be a reversal in metal market
- This formation resembles head with shoulders thus its name.
- To draw the neckline we use chart point 1 & point 2 as displayed below. We also extend this line in both directions.
- We sell when metals price breaks below the neck line: see the chart below for explanation.
Or the head & shoulders can also form on a slanting neck line, like the metal examples illustrated & described below:
Examples of Head & Shoulders Pattern on a Metals Chart
Head & Shoulders Pattern
This metal pattern can also be formed on a slanting neck line, like the one above, the neck line doesn't have to be necessarily horizontal.
Reverse Head & Shoulders Metal Chart Pattern
This is a reversal head and shoulders pattern which forms after an extended Metal downward metals trend. It resembles an upside-down head shoulders.
This metals trading pattern is considered complete once metals price penetrates above the neck line, which is plotted by connecting these two peaks between the reverse shoulders chart pattern.
To go long buyers place their buy stop metals orders just above the neck-line region.
Summary:
- This Metals pattern forms after an extended move downwards
- This formation indicates that there will be a reversal in metal market
- This formation resembles upside-down, thus the name Reverse.
- We buy when metals price breaks above the neck line: see the chart below for explanation.
Examples of Reverse Head & Shoulders Pattern on a Metals Chart
Examples of Reverse Head & Shoulders Pattern
