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.
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