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How to Commodities Trade Head & Shoulders Commodity Trading Chart Pattern in Commodities

How to Trade the Head and Shoulders Commodity Trading Chart Pattern

Head and Shoulders Commodity Trading Chart Pattern

Head and Shoulders Commodities Trading Pattern is a reversal commodities chart pattern that forms after an extended Commodities upwards trend.

Head and Shoulders Commodity Trading Chart Pattern is made up of 3 consecutive peaks, the left shoulder, the head and the right shoulder with 2 moderate troughs between the 2 shoulders.

This Head & Shoulders Commodity Trading Chart Pattern is considered complete once commodities price penetrates and moves below the neckline, which is drawn by joining the two troughs between the shoulders pattern.

To open a sell commodity trade after this reversal commodity signal, Commodities traders place their sell stop commodities trade orders just below the neckline.

Summary:

  • This Head & Shoulders Commodities Trading Pattern forms after an extended move upwards - commodity upwards trend
  • This Head & Shoulders Commodities Pattern formation indicates that there will be a reversal in the commodities trading market
  • This Head & Shoulders Commodity Chart Pattern formation resembles a head with shoulders thus its name.
  • To draw the neck-line we use chart point 1 and point 2 as shown on the commodity example illustrated and explained below. We also extend this line in both directions.
  • We sell when commodities price breaks-out below the neck-line: as explained on the commodity example illustrated and explained below.

Trading Technical Analysis of Head & Shoulders Chart Patterns

Commodities Trade Head & Shoulders Commodities Trading Chart Pattern in Commodities?

Or the head and shoulders commodity pattern can also form on a slanting neckline, like the commodity example illustrated and explained below:

Technical Analysis of Head and Shoulders Commodity Trading Chart Patterns

Commodities Trade Head & Shoulders Commodities Trading Chart Pattern in Commodities?

Example of Head & Shoulders Commodity Trading Pattern on a Commodity Trading Chart

Trading Technical Analysis of Head & Shoulders Chart Patterns

How to Trade the Head and Shoulders Commodity Trading Chart Pattern - How Do I Analyze Head and Shoulders Commodity Trading Chart Patterns?

This Head & Shoulders Commodities Trading Pattern can also be formed on a slanting neckline, like the head & shoulders commodity pattern examples above, the neck-line does not have to be necessarily horizontal.