Archive for January 12th, 2010
Head and shoulders trading formation is the most recognized reversal technical pattern and it is very popular among novice forex traders. Many of them can see head and shoulders patterns even if there is no sign of it on the chart. Head and Shoulders formation shape includes two shoulders, left and right, and a head between them. There are two kinds of H&S. The first would be the pattern giving us the signal that the trend is reversing to the downside. This formation has the head with the high price between both shoulders. The second is the reversing trend to the up side. This formation has a head with the low price between two shoulders.