How Do I Metals Trade Head & Shoulders Metals Chart Pattern?

How to Trade the Head and Shoulders Metal Chart Pattern

Head & Shoulders Metals Trading Pattern

Head and Shoulders Metals Pattern is a reversal metals trading pattern which forms after an extended Metals Trading upwards trend.

Head & Shoulders Metals Pattern is made up of 3 consecutive peaks, the left shoulder, the head & the right shoulder with 2 moderate troughs between the 2 shoulders.

This Head & Shoulders Metals 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 open a sell metals trade after this reversal metals trading signal, Metals traders place their sell stop metals trading orders just below the neck line region.

Summary:

• This Head & Shoulders Metals Pattern forms after an extended move upwards - metals upwards trend
• This Head & Shoulders Metals Pattern formation indicates that there will be a reversal in metal market
• This Head & Shoulders Metals Pattern formation resembles a head with shoulders thus its name.
• To draw the neckline we use chart point 1 & point 2 as shown on the metal trading examples illustrated & described below. We also extend this line in both directions.
• We sell when metals price breaks-out below neckline: as explained on the metal examples illustrated & described below.

Metals Trade Head & Shoulders Metals Chart Pattern?

Or the head and shoulders metal pattern can also form on a slanting neck line, like the metal examples illustrated & described below:

Metals Trade Head & Shoulders Metals Chart Pattern?

Example of Head & Shoulders Metals Trading Pattern on a Metals Chart

How to Trade the Head and Shoulders Metals Chart Pattern

This Head & Shoulders Metals Pattern can also be formed on a slanting neck line, like the head & shoulders metal pattern example above, the neck-line doesn't have to be necessarily horizontal.