Head and Shoulders – What is a Head-and-Shoulders in forex?

What is a Head-and-Shoulders?

Definition OfHead-and-Shoulders: This can be explained as a bearish opposite pattern that is popular among the technical analysts and the Forex traders. It contains a chain of three rallies like the first and the third rally, the shoulder that have the similar heights and the middle named as head is the uppermost of all. The support line created by a line joining the base of the shoulders is called as neckline. It should be horizontal. In most of the cases, it may rise or fall, but the Forex traders feel that the signal is dependable if the slope moves in a downward position, therefore confirming a fall in he cost. When the neckline breaks the expectation cost point is similar with the leader’s amplitude from the neckline.