#TradingAnalysis101

Understanding Chart Patterns

Hey traders!

Want to improve your trading skills?

Let's dive into the world of chart patterns!

*Today's Focus: The Head and Shoulders Pattern*

The Head and Shoulders pattern is a popular reversal pattern that can help you identify potential trend changes.

*How to Identify the Pattern:*

1. Look for a peak (the head) followed by a trough (the left shoulder)

2. The head should be higher than the shoulders

3. The pattern should form after an uptrend

*What Does it Mean?:*

A Head and Shoulders pattern can indicate a potential reversal of the uptrend.

*Trading Strategy:*

1. Wait for the pattern to form and confirm

2. Short the asset when the price breaks below the neckline

3. Set your stop-loss above the head

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