Gao Jingqi: A "Head and Shoulder Top Form" that beginners must learn

Gao Jingqi: A "Head and Shoulder Top Form" that beginners must learn
　　
Today, let me talk about the head shoulder top shape, which is also one of the common reversal signals.
　　
Explanation of the professional term 'head shoulder top': It is a chart form used in investment technology analysis to describe the price or market index of a variety. The curve in the chart is like a person carrying a head on two shoulders. The appearance of such a pattern also means that the bull market has come to an end and is about to begin a downward trend.
　　

　　

　　
Morphological analysis:
　　
Left shoulder: A prolonged upward trend with strong momentum, reaching a certain point and stepping out of a downward trend, causing the market to reach its first peak.
　　
Head:After a brief decline in the market,Continuing to rise again, reaching new highs, but this strength is noticeably weak compared to the previous rise. Looking at the daily chartkThe line can reflect the appearance, and the upward trend of the left shoulder is a big positive line. This time, the new high trend is basically a small section, with the middle positive line being the main trend. Then quickly walked out and fell back, without falling below the low point of the previous peak, also known as the neckline. So the second peak comes out.
　　
Right shoulder:The third peak is generally at the same price as the first peak. Without breaking the neckline, the low point that fell for the first time is once again supported to rise. During the rise process, if there is a drop at the first peak, the third peak will appear, which is also commonly referred to as the right shoulder.
　　
The above only mentioned the formation of the head, shoulder, and top, but another important thing is to break through. It must break through the neck line and shoulder top to fully establish. Generally, the drop in the right shoulder is also quite significant.
　　
Let's use it now2019year9month04Number head1557For example, we ate this wave.
　　
Firstlygoldalways1266Has been showing a strong upward trend, reaching1535Step out and fall back, forming the first peak at the position of the left shoulder, and step back to correct it to the neckline1480Let's put in the effort again1557Form a head and move out of a trend of rising and falling. In fact, during this process, everyone can feel the signs of weak upward momentum, without breaking the neckline again1480Before the first line, we need to prevent whether the market is building a head to shoulder pattern or if there is still a wave of rising and building a right shoulder, which is our main profit point.
　　

　　

　　
The market is once again on the neckline1480The point is supported and strengthened again. At this point, it is important to focus on the suppression of the first peak on the same horizontal line. If gold is under pressure again at this point, the right shoulder will appear. At this time, it is possible to layout the center line, at least50The profit in US dollars. The gold also fell below the neckline, but it was a virtual break. After a long period of consolidation, the gold continued to strengthen. Therefore, without fully breaking the neckline point, it is not considered a complete head and shoulder top shape. In recent years, gold has been on an upward trend and can form a few head and shoulder tops. But grasping the drop in the right shoulder can also yield a considerable profit.
　　
Let me talk about the recent construction of the head and shoulder top shape.2020year5month18Number head1765Point position.
　　
What impressed everyone about this wave of market is that gold1450Get support, still showing a strong upward trend, and work hard all the way up1747The line forms the first peak, which is also the left shoulder position I mentioned recently. This wave of combining fundamentals has actually caught many people's attention. My friends who have been following me all the time should know that I have eaten all of this wave of market trends, and my thinking has been much lower all the way, and my account has also smoothly flipped over2Double it.
　　
I stepped out and stepped back, and the low point was right there1660The first line is also the position of the neckline. The second wave of upward trend is similar to the shape of the head, shoulder, and top as I mentioned earlier. This wave of upward trend reached a new high1765First line, but the intensity is clearly not as strong as the first wave. The market rebounded again and did not fall below the neckline1660First line, we need to pay attention to the pressure on the left shoulder position at this time.
　　

　　

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As the market gradually approaches the left shoulder position1747Frontline. It has always been suggested that there is a possibility of forming a head shoulder top shape, and the market is at its highest point1745We'll start going back and forth, and now we're at the lowest point1670.
　　
In fact, after the two examples I just gave, the use of "head and shoulder top" is consistent with the morphological trend characteristics I want to talk about, and profits are basically derived from grasping the profits that fall on the right shoulder. In fact, currently these two heads and shoulders are only semi-finished products, and the first one can be said to be a failure.
　　
Why is it said that the first one failed? Because it did not effectively fall below the neckline when the right shoulder fell, and only after falling below this point did it officially begin. So let's take the second example now, it's still a semi-finished product and still hasn't broken the neckline position1660Frontline. So the next step is to focus on1660Effective breakthrough situation on the front line. The shape of the shoulder top is established, which is highly likely to come down1600perhaps1480That's the charm of the head and shoulder top shape.
　　
Summary:There are still many small details in the formation of the top of the head and shoulders, which need to be carefully tasted. It is important to pay more attention to the morphological features mentioned above. It is easy to find the right shoulder, but the difficulty lies in breaking the neck line. Head and shoulder tops are not common, and once they appear, they bite and hold on, allowing the account to have a beautiful doubling battle.
　　
Editor in charge: Gao Jingjun（wei：gjs1598）
　　
Gao Jingxiao carefully writes every analysis and conveys valuable investment ideas. I hope the price is worth it, the value is worth it, the market is respected, and strict discipline is enforced!
　　
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