📒 A series of conversations on the art of trading:
🖋 Lesson: 39 — The Head and Shoulders Pattern
👼 Angel: What is the Head and Shoulders pattern?
🦅 Falcon: It is a technical reversal pattern made up of three peaks. The middle peak is higher than the two on either side, and it often signals a possible reversal from an uptrend to a downtrend.
👼 Angel: How can I confirm that the pattern has formed?
🦅 Falcon: By watching for a break of the neckline, which connects the two troughs between the peaks. It’s best to wait for a candle to close and confirm the breakout.
👼 Angel: Is seeing the pattern enough to open a sell position?
🦅 Falcon: No. The pattern can fail, so wait for confirmation, set a stop-loss, and manage your risk wisely.
■The lesson:
🔥 Don’t trade based only on a shape you see; wait for confirmation. Patience protects you from false signals.
■Dedicated to:
🦅💌 To my angel, who taught me that no matter how high the peaks rise, they don’t guarantee that the climb will continue—and that wisdom lies in reading the signals before making a decision.
للإطلاع على باقي المواضيع يرجى الدخول من هنا
$AGT $EPIC $BTW
🖋 Lesson: 39 — The Head and Shoulders Pattern
👼 Angel: What is the Head and Shoulders pattern?
🦅 Falcon: It is a technical reversal pattern made up of three peaks. The middle peak is higher than the two on either side, and it often signals a possible reversal from an uptrend to a downtrend.
👼 Angel: How can I confirm that the pattern has formed?
🦅 Falcon: By watching for a break of the neckline, which connects the two troughs between the peaks. It’s best to wait for a candle to close and confirm the breakout.
👼 Angel: Is seeing the pattern enough to open a sell position?
🦅 Falcon: No. The pattern can fail, so wait for confirmation, set a stop-loss, and manage your risk wisely.
■The lesson:
🔥 Don’t trade based only on a shape you see; wait for confirmation. Patience protects you from false signals.
■Dedicated to:
🦅💌 To my angel, who taught me that no matter how high the peaks rise, they don’t guarantee that the climb will continue—and that wisdom lies in reading the signals before making a decision.
للإطلاع على باقي المواضيع يرجى الدخول من هنا
$AGT $EPIC $BTW