Head and shoulders
Figure "Head and Shoulders"
Technical Figure "Head and Shoulders" - is formed at the highs of the price chart during an uptrend. Through points 1 and 2, the line of the base of the figure (the line of the neck) is drawn. The figure is considered fully formed only after the price closes below the bottom line of the figure.
After that, the price is expected to decline by at least the height of the pattern, which is measured as the distance in points from the pattern's high to the neck line. It is recommended to sell either immediately during the breakout of the base line of the figure, or after waiting for a rollback to it after the breakout.
Inverted head and shoulders figure
The "Inverted Head and Shoulders" pattern is formed at the lows of the price chart during a downtrend. Through points 1 and 2, the line of the base of the figure (the line of the neck) is drawn. This figure of technical analysis is considered to be fully formed only after the price closes above the bottom line of the figure.
After that, the price is expected to rise by at least the height of the pattern, which is measured as the distance in points from the low of the pattern to the neck line. It is recommended to buy either immediately during the breakout of the base line of the figure, or after waiting for a rollback to it after the breakout.
