Commodities Upward Commodities Trend Reversal Trading Strategy
Head & Shoulders Commodity Trading Chart Pattern Reversal Trading Signals
This is an upwards commodity trend reversal commodities trading chart pattern which forms after an extended Commodities upward commodities trend. It's made up of three consecutive peaks, the left shoulder, head and the right shoulder with 2 moderate troughs between the shoulders.
This reversal trading strategy pattern is considered complete once commodities price penetrates below the neckline, which is drawn by joining the two troughs between the shoulders pattern.
This reversal commodity signal is confirmed once commodities prices moves below the neckline
Summary:
- This reversal trading strategy pattern forms after an extended move upward
- This reversal strategy pattern indicates that there will be a reversal in commodities market
- This reversal strategy pattern resembles head with shoulders thus its name.
- To draw the neck-line we use chart point 1 & point 2 as shown below. We also extend this line in both directions.
- We sell when commodities price breaks below the neckline: as explained below:
Head and shoulders reversal trading strategy pattern can also form on a slanting neck line, like the commodity example illustrated and explained below:
Commodities Upward Commodities Trend Reversal Strategy - Head & shoulders Commodities Trading Chart Pattern
Commodities Upward Commodities Trend Reversal Strategy - Head & shoulders Commodities Trading Chart Pattern
This reversal trading strategy pattern can also be formed on a slanting neck-line, like the one above, the neck line doesn't have to be necessarily horizontal.
