Page 6 - Module & Head and Shoulders
P. 6

Module 7 – Head and Shoulders

                           NOTICE IN THIS
                         CHART THAT THE
                       MARKET HAS CLOSED
                             BELOW THE
                          NECKLINE.  THIS
                       CONFIRMS THE HEAD
                         AND SHOULDERS
                        PATTERN AND ALSO
                              SIGNALS A
                              BREAKOUT












               3.      what causes the head and shoulders technical chart pattern to form?

                      Price does not continue rising all the time or falling all the time. There will be times when it will
                      reverse and go in the opposite direction.  So, if the market is in an uptrend, it will not always keep
                      going up because sooner or later the uptrend will slow down, and the forces of demand and supply
                      will balance out and this can result in the head and shoulder pattern being formed.



























                       Let us discuss the figure above:




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