Is Head and Shoulders XAUUSD Pattern Bullish or Bearish?
Head & Shoulders Trading Pattern
Head & Shoulders Chart Pattern is a Bearish Gold Chart Pattern - Head and Shoulders Pattern is a Bearish XAUUSD Signal Pattern
Summary:
- This Head & Shoulders Chart Pattern forms after an extended move upward - xauusd upward trend
- This Head and Shoulders Pattern formation indicates that there will be a reversal in gold trading market
- This Head and Shoulders Pattern formation resembles a head with shoulders thus its name.
- To draw the neckline we use chart point 1 & point 2 as illustrated on the xauusd example shown below. We also extend this line in both directions.
- We sell when price breaks-out below the neckline: as described on the gold trading example shown below.
What Does Head & Shoulders Pattern Mean?
Or the head & shoulders pattern can also form on a slanting neck line, like the xauusd example shown below:
What Does Head & Shoulders Pattern Mean?
Examples of Head and Shoulders XAUUSD Pattern on a XAUUSD Chart
Analysis of Head and Shoulders Chart Pattern - Example of Head and Shoulders Chart Pattern
This Head & Shoulders Chart Pattern can also be formed on a slanting neck line, like the head and shoulders chart pattern example above, the neck-line does not have to be necessarily horizontal.
