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some powerful chart patterns
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Trading In the zone
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#inversehead&shoulder Inverted head and shoulders is a bullish reversal pattern; the pattern has similar components like head and shoulders and is the opposite. Most new forex traders and experienced traders can successfully trade the head and shoulders pattern and are often considered profitable traders.
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#HEAD&SHOULDER The most important of the chart patterns is a head and shoulder pattern; it is a bearish reversal pattern. This pattern provides an entry point and a stop loss; the take prot is calculated as a multiplier of stop loss. Its distinctive left shoulder identies the pattern and a head followed by the right shoulder. The neckline is another critical component of the head and shoulder pattern,neckline is drawn connecting the base of the shoulders and the head. The pattern is completed once the left shoulder, head, and right shoulder are formed, followed by the neckline break.The neckline break by the price is considered the best entry point, the stoploss can be placed on the high of the right shoulder, while the take profit can be calculated at a 1:2 .
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