Head & Shoulders Trading Pattern
Head and Shoulders Trading Pattern Reversal XAUUSD Signals
This is an upward xauusd trend reversal trading pattern which forms after an extended XAUUSD upward gold trend. It's made up of three consecutive peaks, the left shoulder, head and the right shoulder with two moderate troughs between the shoulders.
This reversal strategy pattern is considered complete once gold price penetrates below the neckline, which is drawn by joining the two troughs between the shoulders pattern.
This reversal xauusd signal is confirmed once gold prices moves below the neckline
Summary:
- This reversal strategy pattern forms after an extended move upward
- This reversal trading strategy pattern indicates that there will be a reversal in gold market
- This reversal trading strategy pattern resembles head with shoulders thus its name.
- To draw the neck-line we use chart point 1 and point 2 as displayed below. We also extend this line in both directions.
- We sell when price breaks below the neckline: as explained below:
Head & shoulders reversal trading strategy pattern can also form on a slanting neck line, like the xauusd example shown below:
Upwards XAUUSD Trend Reversal Strategy - Head and shoulders Gold Chart Pattern
Upwards XAUUSD Trend Reversal Strategy - Head and shoulders Gold Chart Pattern
This reversal trading strategy pattern can also be formed on a slanting neck line, like the one above, the neckline does not have to be necessarily horizontal.
