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Head and shoulders

The head and shoulders are famous for the top shaping. It expresses a left shoulder, a head and a right shoulder, which heights differs from each other. It is also called as S-H-S in the foreign terminology. The point to watch the head and shoulders is whether the line starting from the right shoulder breaks clearly the neckline downward or not. It follows that the neckline is focused on. You should pay more attention to the rebound in spite of breaking neckline, because cheating happens quite often in the forex market.

Head and shoulders, Neckline

Reverse head and shoulders

On the contrary to the normal head and shoulders, the reverse head and shoulders shapes the bottom of the forex market, and it is just formed topside down. The point to watch the reverse shape of head and shoulders is whether the line starting from the right shoulder breaks clearly the neckline upward or not.

Reverse Head and shoulders, Neckline

Triple tops

The shape of triple tops suggests a ceiling of the forex market. It is different from the head and shoulders that the heights of three tops are all the same. It makes sure that the forex market seems quite heavy around the top as never breaking despite three times trials. The figure, three, is so significant in the forex market that you need to take care of failure to break at third trial. The reverse shape with topside down is called as the triple bottoms and it suggests a floor of the forex market.

Triple Tops, Neckline

Double bottoms

The shape of double bottoms suggests a floor, and the reverse shape with topside down is called as double tops which suggests a ceiling.

Double Bottoms, Neckline
 

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