After the stock price rose to a certain extent, it took profit-taking. After the price adjustment, it rose again. But when it rose to the last high, it was under pressure again and fell below the last low. Fortunately, the stock price rebounded for the second time soon. Unfortunately, I still failed to break through the high point and retreated this time. It stopped falling when it fell to the level of the left shoulder, and then rebounded beyond the high resistance level to continue the original upward trend.

The head and shoulders are low-priced collective buying areas, and the head and shoulders finishing form (head and shoulders) appearing in the market can be said to be a midway collective buying area, which is a good opportunity for those who miss the first buying opportunity to buy again! Suddenly, the trend seems to be unbreakable many times, and the resistance to rise is great. In fact, it's just a price cut!

Head and Shoulder Top is a high-priced distribution selling area, and the head and Shoulder Top finishing form (head and Shoulder Top) that appears in the stock market decline seems to show strong support at a certain level (that is, the neckline). In fact, this is just another sales opportunity. Some large companies are shipping at low prices, and those investors who can't sell before the stock market falls are taking the opportunity to go out.

2. Morphological analysis

In general, the head-shoulder type is a turning type. When it appears, it means that the past trend has ended and the future market (or stock price) will move in the opposite direction.

Some investors may think that if the head-shoulder-bottom style becomes a turning style and a finishing style at the same time, it will enlighten us that the stock price will continue to move in the previous direction instead of reversing the original trend.

Head-shoulder steering type—

(1) Head and shoulder top-appears in the falling market;

(2) Head and shoulders-appearing in the market.

Head and shoulder trimming type-

(1) Head and shoulder top-appears in the rising market;

(2) Head and shoulders-the emergence of cities.

From the morphological point of view, the head-shoulder arrangement is basically the same as the head-shoulder arrangement, with the head protruding, the left shoulder and the right shoulder, and the heights of the two shoulders are roughly equal; Neckline is the main level of recognition pattern establishment. As for the transaction volume, there is a decreasing trend in the process of the formation of the head, shoulders and soles.

3. Key points and tips

(1) Although there is a method to measure the minimum rise/fall of the head-shoulder type, this measurement formula is not applicable to the head-shoulder finishing type. In other words, there is no way to measure this type of minimum rise/fall.

(2) Complex types of head and shoulder finishing, such as one head with multiple shoulders and multiple shoulders, rarely appear on the chart.

(3) When the head-shoulder-sole finishing form breaks through the neckline resistance upwards, there will be a lot of transactions, but when the head-shoulder-sole finishing form falls, it will not necessarily be accompanied by an increase in transactions.