Is Head and Shoulders Commodities Trading Pattern Bullish or Bearish?

Head and Shoulders Commodities Trading Chart Pattern

Head and Shoulders Commodity Trading Chart Pattern is a Bearish Commodities Trading Chart Pattern - Head and Shoulders Pattern is a Bearish Commodity Trading Signal Pattern

Summary:

• This Head and Shoulders Commodity Trading Chart Pattern forms after an extended move upwards - commodity upward trend
• This Head and Shoulders Commodities Trading Chart Pattern formation indicates that there will be a reversal in the commodity market
• This Head and Shoulders Commodities Trading Chart Pattern formation resembles a head with shoulders thus its name.
• To draw the neckline 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 below the neckline; as explained on the commodity example illustrated and explained below.

What Does Head and Shoulders Commodity Trading Chart Pattern Mean?

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

What Does Head and Shoulders Commodities Trading Chart Pattern Mean?

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

Technical Analysis of Head and Shoulders Commodities Trading Chart Pattern - Example of Head and Shoulders Commodity Trading Chart Pattern

This Head and Shoulders Commodity Trading Chart Pattern can also be formed on a slanting neckline, like the head and shoulders commodity chart pattern example above, the neckline does not have to be necessarily horizontal.