GOLD, D1 chart
Thanks in advance
Hello to the OP!
Jadd806 has it right!
However, I should say that a head and shoulders pattern is generally a reversal pattern: when the trend is bullish, a head and shoulders signals a turn to the downside; in the scenario given above, as the original trend is bearish, you would need an inverse head and shoulders, with the head below the shoulders, and the ‘neckline’ above the shoulders… In this scenario, the (inverse) head and shoulders would signal a possible reversal to the upside…
I hope this helps.
Cheers.
PS: I just remembered watching a video last month which was entirely dedicated to Head and Shoulder patterns; here it is:
Forex Strategy Video: Head and Shoulders Patterns on AUDUSD, S&P 500, Others | DailyFX
The author is John Kicklighter, Chief Strategist at DailyFX.com…
I hope this helps…
I believe the H&S mentioned is not in play any more as it was cancelled after price convincingly broke above the certain’s formation neckline (blue line in the image you have attached).
I meant to ask about the double bottom formation’s neckline (bottoms as appear in the grey transparent ellipse shapes).
Can you supply a hint on where the certain neckline should be; do you think that the white line can be a valid neckline for the double bottom formation?
Thanks
