Li Yuejing: Classic Analysis Techniques for Gold Investment - "Head and Shoulder Top"KLine diagram

Yue Jing's message: The trend isfuturesThe essence of trading, understanding trends, and gaining the golden key to making money in the market. Following the trend can avoid losses and generate profits.

As a turning point between an upward trend and a downward trend, the top of the head and shoulders is a relatively reliable downward signal. Understanding the formation pattern, morphological characteristics, and corresponding buying and selling strategies of the head, shoulders, and bottoms can not only seize important short selling opportunities, but also, in the opposite case, seize clear bullish opportunities based on the upward signal of the head, shoulders, and bottoms.
The so-called head and shoulder tops are formed in this way: following the previous stage's upward trend, the trend rises toAPoint begins to fall back; fall toBThe point is able to stand firm; Another round of upward momentum, surpassingAPoint at the price point, in order toCPoint at the top of the rising wave, then fall back and slide to the point where it is related toBAt a similar level, atDStop and then turn back upwards, rising to the same level asAA price range with little difference in pointsEStop and then turn around and plummet, when it breaks throughBAndDThe neckline formed by two low points forms the entire downward trend.
This shape has three high points, with the highest point in the middle, resembling a person's head and lower sides, resembling two shoulders, so it is called "head shoulder top" according to the image. Pay attention to the job and be good at it“goldAnalyst Li Yueqing can enter the gold guidance group and the layout of the gold midline,crude oilA profit plan for the band!

Firstly, the head and shoulders are generated during an upward trend. When the right shoulder does not appear, just looking at the left shoulder and head, it is a rising trend of "waves rising one by one". Even if buying on the left shoulder, the situation is still very good at the price above the head; Real time market changes, strategy for reference only, consult Li Yueqing on real-time entry and exit points and medium to long term line layout(lyq9514)Free acquisition
Secondly, by falling from the top of the head, turning back and up, and then sharply turning down to a price similar to the left shoulder, the right shoulder is formed. At this point, contracts bought in the one head and two shoulders area become unprofitable with significant floating losses;
Thirdly, when the trend falls below the neck line, because the entire head and shoulder top is based on the neck line, breaking the neck line, all the bullish positions in the head and shoulder top area are wiped out, and no one is spared.
Bears took advantage of the situation and fell into the pit, while bulls stopped and accepted losses, exacerbating the decline. The formation of a head and shoulders is the foundation for a major decline. official account/Gold Analyst Li Yueqing (official WeChat account:lyq9514 officialQQ：2183674737）
Due to a major battle, planning usually takes about a month and a half, and it takes nearly forty trading days to conceive and take shape. And the drop is at least equivalent to the distance from the top of the head to the neckline.

When the left shoulder and head come out, if we suspect it may be a head shoulder top, we can go short. But we need to set limits and stop losses, and surrender if we climb above our heads. Because it has been proven that it is a wave by wave upward trend, not just a head and shoulders. When the right shoulder has not yet broken the neckline; We can also estimate that the trend will break the line and sell short first, but we also need to set limits. If we turn around and break through the top of the right shoulder, we will stop losing and leave the market, because this development has shown that the trend is not the true top of the head and shoulder, but just a false move that leads to short selling. Don't encounter this trap.
Author/Li Yueqing