Welcome to my First Forex .
Let´s get straight to the point, NYSE:ABBV is going through a very nice shaped Head and Shoulder Pattern.
For now, as we only have the left shoulder, we can´t predict how high the head will be, or how low the correction after this pattern will go, because the size of the structure holds a direct relationship with the potential target for the trade. Therefore, it is paramount to understand how to measure the size of the pattern. To do so, you need to take the distance between the tip of the head and the neck line. This will yield the size of the pattern. We will be doing this once we have a new All Time High from NYSE:ABBV .
Once we have what we want, we will be able to apply this length downwards, starting from the initial breakout through the neck line. This is the price move you should expect when trading the setup. In other words, the expected price move after the pattern equals to the size of the pattern. This is often referred to by chart technicians as a measured move.
FOR THE NEWBIES: The pattern appears during a and it implies that the existing tendency is likely to be reversed.
The pattern is one of the most reliable chart patterns in Forex.
It forms during a and has the potential to reverse the uptrend.
The name of the pattern comes from its visual structure – two tops with a higher top in between.
The pattern consists of three tops:
The first top should be found in the context of a .
The second top should be higher than the first top.
The third top should be lower than the second top and should be approximately on the same level as the first top.
Let´s keep an eye open on this chart together and i´ll update it as soon as we have reached a new A.T.H. and when we have a Head shape.
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