"The slope of the neckline will affect the pattern's degree of bearishness—a downward slope is more bearish than an upward slope. Sometimes more than one low point can be used to form the neckline.
Ideally, but not always, volume during the advance of the left shoulder should be higher than during the advance of the head.
This decrease in volume and the new high of the head, together, 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.
It is important to remember that it occurs after an uptrend and usually marks a major trend reversal when complete"
I can see people just get to know about a pattern, try to find it in charts and boom..! like they got the jackpot. This time this trade worked in your favour, but that will not be the case most of the time.
There are flaws in your analysis. Volume was not as per the pattern.
Always consider volume as a leading indicator.
Anyways, profit was yours this time, beware next time.
Ideally, but not always, volume during the advance of the left shoulder should be higher than during the advance of the head.
This decrease in volume and the new high of the head, together, 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.
It is important to remember that it occurs after an uptrend and usually marks a major trend reversal when complete"
I can see people just get to know about a pattern, try to find it in charts and boom..! like they got the jackpot. This time this trade worked in your favour, but that will not be the case most of the time.
There are flaws in your analysis. Volume was not as per the pattern.
Always consider volume as a leading indicator.
Anyways, profit was yours this time, beware next time.