Calling for H&S comments:

14. Mai 2018

Hi all, do these patterns qualify as Head and Shoulders?
I have read up on Bulkowski's and Investopedia, but still need clarification, if anyone would like to provide some details of the rules?
Would Head 1 not pass because the left of the left shoulder doesn't meet a straight neckline? If it had come down to the blue line, would that have been a pass?
I know Head 2 hasn't formed yet, but if it does, would the fact that some candles are outside of the shaded head nullify the pattern?

14. Mai 2018

Anmerkung

Nup, even if the candles came down the left side of the left shoulder to the neckline of Head 1, it would not be validated as a head & Shoulders Pattern because a candle did not close below the neckline at the right side of the right shoulder.
Pattern 2 is just not symmetrical. Head is lopsided, the shoulders do not peak near the same price and again a candle did not close below the neckline.
I'm going to keep an eye out on some of the weird and wonderfully abstract interpretations of the rules that get palmed off as true around here from now on.