Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post
Market Place

Add an ad

View all ads

Latest topics

» lOFC definitely will hit 6/-
by stockback Today at 2:29 pm

» Loss-making stockbrokers may not last six months
by samaritan Today at 2:08 pm

» Why we should buy AEL.N0000…?
by karuna2 Today at 1:27 pm

» ECL wAS 2.8 Last week Today 4.7 .Whats Next? Acme?
by karuna2 Today at 1:23 pm

» IDL IDL IDL
by Teller Yesterday at 6:18 pm

» Why AAIC Should trade above RS.50/-
by wisdom79 Yesterday at 7:18 am

» RICH is not bad @ 9/-
by Teller Yesterday at 2:52 am

» Look APLA its trending to 98LKR
by Teller Yesterday at 2:24 am

» WATA future looks good
by Teller Yesterday at 2:16 am

» SAMP Oversubscribed?
by Teller Yesterday at 2:13 am

» If i am the EPF buyer,I will go for PLC
by Teller Yesterday at 2:06 am

» BFN බොරු සෙලින් දාලා කොහොම හරි 11 වගේ ගානට 500000 එකතු කරගන්න කියලා අර 14 ට ලක්ශයක් සෙලින් දැම්මේ මේ ටේලර් මහත්තයාම තමයි
by Teller Yesterday at 1:57 am

» Apple Lost Sales in Europe to Chinese Firms Ahead of US Huawei Crackdown
by Teller Yesterday at 1:44 am

» Market is On The Rise.Market PER 8.5, EPF Has entered the market curently they are buying AEL (Access Enginering)There'r lot of counters. Rich,TkyoAsir,Amsl,Osea.CINV.EXPO,JINS and Tyre.good luck
by wisdom79 Fri Jun 14, 2019 7:55 pm

» Keep eye on Politics
by samaritan Fri Jun 14, 2019 1:06 pm

» Market will test 4700
by Yahapalanaya Fri Jun 14, 2019 10:42 am

» NEXT RUN People's leasing and Finance WAIT AND WATCH ENJOY RIDE..
by ddrperera Thu Jun 13, 2019 9:25 pm

» EPF Investment in Unquated copmanies .Who is responsible Previous Centeral Bank Governer and Former Regime.
by Capton KIng Cool Thu Jun 13, 2019 9:05 am

» PDL (Property Development)
by Capton KIng Cool Thu Jun 13, 2019 8:51 am

» EAST Steady at 18
by Cricketman Thu Jun 13, 2019 5:28 am

» Guys what happen these days
by Yahapalanaya Thu Jun 13, 2019 2:29 am

» its right time to buy PHAR@700
by Teller Thu Jun 13, 2019 12:50 am

» Look PAP Amazing company
by Teller Thu Jun 13, 2019 12:46 am

» Sri Lanka stocks end at near 1-month high on local buying; rupee gains
by Teller Thu Jun 13, 2019 12:33 am

» Maharaja ASI
by karuna2 Wed Jun 12, 2019 9:36 pm

» From 10th Onward no more Phillip only Asha securities lts before login go to setting and remove phillip and aply then it will work Good luck
by Yahapalanaya Wed Jun 12, 2019 5:25 pm

» ALHP WILL MOVE UP from next MONDAY
by Teller Wed Jun 12, 2019 4:20 pm

» PDL revised exit offer
by krishna Wed Jun 12, 2019 10:55 am

» ASHAPHILLIP SECURITIES
by Yahapalanaya Wed Jun 12, 2019 9:42 am

» Will CTC be effected?
by Yahapalanaya Wed Jun 12, 2019 6:48 am

» Guys Look for DPL@5.20
by Teller Wed Jun 12, 2019 2:36 am

» AEL GOOD BUY
by wisdom79 Tue Jun 11, 2019 8:47 pm

» Colombo Bourse reports the ‘Second Lowest Daily Turnover’ for the year 2019
by Miss-Sangeetha Mon Jun 10, 2019 8:25 pm

» What a Joke? who will invest in Sri lanka?
by Teller Sun Jun 09, 2019 7:30 pm

» senior citizen Interest Subsidy arrears of 33 billion rupees
by samaritan Sat Jun 08, 2019 11:48 am

» Dhammika also resposible this
by samaritan Sat Jun 08, 2019 9:47 am

» COLO.N https://www.cse.lk/home/company-info/COLO.N0000/announcementsNew
by Yahapalanaya Sat Jun 08, 2019 2:08 am

» Dark times - Sampath Bank
by samaritan Fri Jun 07, 2019 1:03 pm

» AAIC will kill investors money within 15 years
by wisdom79 Fri Jun 07, 2019 12:21 pm

» I couldn't log from Dubai
by Teller Thu Jun 06, 2019 7:12 pm

» Sri Lanka stocks extend fall despite rate cut in thin trade; rupee steady
by Teller Thu Jun 06, 2019 7:10 pm

» Why beg sirisena?
by Teller Thu Jun 06, 2019 7:02 pm

» Be vegetarian
by nuwanmja Wed Jun 05, 2019 11:48 am


You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Head and Shoulders Top

Head and Shoulders Top

Go down  Message [Page 1 of 1]

1Head and Shoulders Top Empty Head and Shoulders Top on Sat May 25, 2019 8:49 am

freeforexsignals2020


Stock Trader
[ltr]Head and Shoulders Top[/ltr]
 
[ltr]A Head and Shoulders reversal pattern forms after an uptrend, and its completion marks a trend reversal. The pattern contains three successive peaks, with the middle peak (head) being the highest and the two outside peaks (shoulders) being low and roughly equal. The reaction lows of each peak can be connected to form support, or a neckline.[/ltr]
 
[ltr]As its name implies, the Head and Shoulders reversal pattern is made up of a left shoulder, a head, a right shoulder, and a neckline. Other parts playing a role in the pattern are volume, the breakout, price target and support turned resistance. We will look at each part individually, and then put them together with some examples.[/ltr]
 
[ltr]Prior Trend: It is important to establish the existence of a prior uptrend for this to be a reversal pattern. Without a prior uptrend to reverse, there cannot be a Head and Shoulders reversal pattern (or any reversal pattern for that matter).[/ltr]
 
[ltr]Left Shoulder: While in an uptrend, the left shoulder forms a peak that marks the high point of the current trend. After making this peak, a decline ensues to complete the formation of the shoulder (1). The low of the decline usually remains above the trend line, keeping the uptrend intact.[/ltr]
 
[ltr]Head: From the low of the left shoulder, an advance begins that exceeds the previous high and marks the top of the head. After peaking, the low of the subsequent decline marks the second point of the neckline (2). The low of the decline usually breaks the uptrend line, putting the uptrend in jeopardy.[/ltr]
 
[ltr]Right Shoulder: The advance from the low of the head forms the right shoulder. This peak is lower than the head (a lower high) and usually in line with the high of the left shoulder. While symmetry is preferred, sometimes the shoulders can be out of whack. The decline from the peak of the right shoulder should break the neckline.[/ltr]
 
[ltr]Neckline: The neckline forms by connecting low points 1 and 2. Low point 1 marks the end of the left shoulder and the beginning of the head. Low point 2 marks the end of the head and the beginning of the right shoulder. Depending on the relationship between the two low points, the neckline can slope up, slope down or be horizontal. The slope of the neckline will affect the pattern's degree of bearishness—a downward slope is more bearish than an upward slope. In some cases, multiple low points can be used to form the neckline.[/ltr]
 
[ltr]Volume: As the Head and Shoulders pattern unfolds, volume plays an important role in confirmation. Volume can be measured as an indicator (OBV, Chaikin Money Flow) or simply by analyzing volume levels. Ideally, but not always, volume during the advance of the left shoulder should be higher than during the advance of the head. Together, the decrease in volume and the new high of the head serve as a warning sign. The next warning sign comes when volume increases on the decline from the peak of the head, then decreases during the advance of the right shoulder. Final confirmation comes when volume further increases during the decline of the right shoulder.[/ltr]
 
[ltr]Neckline Break: The head and shoulders pattern is not complete and the uptrend is not reversed until neckline support is broken. Ideally, this should also occur in a convincing manner, with an expansion in volume.[/ltr]
 
[ltr]Support Turned Resistance: Once support is broken, it is common for this same support level to turn into resistance. Sometimes, but certainly not always, the price will return to the support break, and offer a second chance to sell. [/ltr]
 
[ltr]Price Target: After breaking neckline support, the projected price decline is found by measuring the distance from the neckline to the top of the head. This distance is then subtracted from the neckline to reach a price target. Any price target should serve as a rough guide, and other factors should be considered as well. These factors might include previous support levels, Fibonacci retracements, or long-term moving averages.[/ltr]
 
[ltr]
free forex signals
 presents special offer[/ltr]
[ltr] open trading account with one of the best forex brokers and GET FREE forex Signals via SMS, Email and WhatsApp  [/ltr]
[ltr]SIGN UP FOR A FREE TRIAL To Access FREE Forex Signals in the Members Area  START FREE 30 DAYS TRIAL on https://www.freeforex-signals.com/[/ltr]

https://www.freeforex-signals.com

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum