Head and Shoulders Pattern Guide to Trader’s


Head and Shoulders Pattern

Head and Shoulders Pattern, As a chart formation, the head and shoulders pattern identifies a reversal from bullish to bearish.
Basically, a head and shoulders pattern appears as a baseline with three peaks, with the outside two close to each other and the middle peak being the highest.
This pattern is considered one of the most reliable reversal patterns. It is one of several top patterns that signal, with varying degrees of accuracy, an upward trend is nearing its end.
The MT4 indicator is to help you identify this magic pattern and give a signal to the entry point with high precision.

Terminal: MT4.
Timeframe: H1, H4, Daily.
Trading Time: Around the clock.

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MT4 Indicator  Settings : 

Forex Shoulders Pattern

Head and Shoulders Pattern Guide : 

The Head and Shoulders Pattern: How Do I Identify It?

Understanding how heads-and-shoulders trend reversals occur can help detect them:
1. An investor who has been driving the stock higher temporarily loses enthusiasm, thereby forming left shoulder.
2. As excitement peaks, the stock's price declines to a point near its previous low.
3. When the stock price returns to its previous high, but fails to reach it again, the right shoulder forms.

 Head and Shoulders Pattern

How Does an Inverse Head and Shoulders Work?

An inverse head and shoulders pattern is akin to the standard head and shoulders pattern, but inverted, which predicts reversals in downtrends based on the top part of the pattern.

Download Head and Shoulders Indicator:



=> Head and Shoulders Indicator

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Author: Forex Wiki Team
We are a team of highly experienced Forex Traders [2000-2023] who are dedicated to living life on our own terms. Our primary objective is to attain financial independence and freedom, and we have pursued self-education and gained extensive experience in the Forex market as our means to achieve a self-sustainable lifestyle.