Doube Tops or Head and Shouders

Beginner Questions
1

Is it possible for these chart formations to be formed in a trending market or they only are formed in a ranging market ?
I ask because I have failed to figure out where to draw the neckline.

2

From what I remember, the neckline does not have to be horizontal - so yes they can happen in a trending market.

Example - Down trending market with Head and Shoulders.

In my view the image is BS as is the technique, but good luck :slight_smile:

Source: https://www.google.co.uk/search?q=head+and+shoulders+chart+pattern+meaning&source=lnms&tbm=isch&sa=X&ved=0ahUKEwj42ozslfzVAhUKQSYKHR6aA_wQ_AUICigB&biw=1680&bih=944#imgrc=llqre9dW_D0XSM:

3

Thanks a lot.
Appreciate it.

4

This type of pattern works on mainly higher time frames like D1, W1 etc! Don’t follow any pattern so blindly, if you are then you should lose this trade!

5

Double Tops and Head & Shoulders are two very different price actions patterns.

I find the first much more helpful than the second.

Double Tops signify that an uptrend might have ended.

Head & Shoulders is said to appear in both trending and ranging markets. It’s quite arbitrary, compared with a Double Top.

Also Double Top is a term from darts, but Head & Shoulders is a type of shampoo. So they’re different in that way, too.