Reversal Silver Trading Chart Patterns: Head and Shoulders & Reverse Head Shoulders
Head and shoulders Silver Trading Chart Pattern
This is a reversal xagusd trading pattern which forms after an extended Silver upward silver trend. It's made up of three consecutive peaks, the left shoulder, the head and right shoulder with 2 moderate troughs between the shoulders.
This silver trading pattern is considered complete once xagusd price penetrates and moves below the neckline, which is drawn by joining the two troughs in between the shoulders chart pattern.
To go short, Silver traders place their sell stop xagusd trade orders just below neck line.
Summary:
- This Silver pattern forms after an extended move upwards
- This formation indicates that there will be a reversal in xagusd trading market
- This formation resembles head with shoulders thus its name.
- To draw the neckline we use chart point 1 & point 2 as displayed below. We also extend this line in both directions.
- We sell when xagusd price breaks below the neckline point: see the trading chart below for explanation.
Or the head and shoulders can also form on a slanting neck line, like the xagusd trading example explained and shown below:
Example of Head & Shoulders Pattern on a Silver Trading Chart
Head & Shoulders Pattern
This xagusd chart pattern can also be formed on a slanting neck line, like the one above, the neck line does not have to be necessarily horizontal.
Reverse Head & Shoulders Silver Trading Chart Pattern
This is a reversal head and shoulders pattern which forms after an extended Silver downward silver trend. It resembles an upside-down head shoulders.
This silver trading pattern is considered complete once xagusd price penetrates above the neckline, which is drawn by connecting these two peaks between the reverse shoulders chart pattern.
To go long buyers place their buy stop silver orders just above the neckline.
Summary:
- This Silver pattern forms after an extended move downwards
- This formation indicates that there will be a reversal in xagusd trading market
- This formation resembles upside-down, thus the name Reverse.
- We buy when xagusd price breaks above the neckline point: see the trading chart below for explanation.
Examples of Reverse Head and Shoulders Pattern on a Silver Trading Chart
Examples of Reverse Head and Shoulders Pattern
