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In my forex funds ceo case, the central top should be higher than ax forex highs on my forex funds ceo sides, which are called the shoulders of the pattern. The shoulders are approximately at the same level, but the distance between them may differ.
Another interesting name for this pattern is Three Buddhas. This is quite logical; in Buddhist temples, according to tradition, a large Buddha figure is placed in the middle, and two smaller figures are displayed on both sides.
It is noteworthy that in Western technical analysis, the Three Buddhas pattern had been used are why trade forex with before the stock head and shoulders pattern was discovered.
This suggests that in the psychology of market participants, there are no differences on a national basis. Is the head and shoulders pattern bullish my forex funds ceo bearish. An inverse head and shoulders formation in a bearish market means the trend must have reached its bottom and could turn up. On the technical analysis chart, the head and shoulders pattern forms following an uptrend and asset price consolidation. However, head and shoulders can appear in a downtrend; in this case, it will be a trend continuation pattern, meaning the price will my forex funds ceo falling deeper.
Following the first top, left shoulder, the price goes down to the support level and bounces off. At the first rebound, bulls go ahead and drive the price higher than the first high, forming the Head of the pattern.
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