Forex head and shoulders bottom K-line pattern diagram, what are the characteristics of the weekly head and shoulders bottom pattern?

The K-line has a shape similar to an inverted "n∩n", with two shoulders on both sides and a slightly higher middle like a human head. This shape is called "head and shoulders bottom" and "head and shoulders top" by people. This article will focus on introducing the K-line pattern diagram of the head and shoulders bottom, as well as the characteristics of the weekly head and shoulders bottom pattern.

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Head and shoulders bottom k-line pattern diagram

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The shape of the bottom of the head and shoulders is the same as the top of the head and shoulders, but the whole shape is reversed, also known as "inverted head and shoulders". When the left shoulder is formed, the stock price falls with a relative increase in volume, followed by a secondary rise with less volume. Then the stock price fell again and fell below the last low point, and the trading volume increased again with the decline, which was more than the trading volume during the rebound stage of the left shoulder - forming a head; when it rebounded from the bottom point of the head, the trading volume increased may increase. The volume of the entire head is more than that of the left shoulder.

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When the stock price rebounded to the last rebound high, there was a third fall. At this time, the trading volume was obviously less than that of the left shoulder and the head. When the stock price fell to the level of the left shoulder, the decline stabilized and the right shoulder was formed. .

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Finally, the stock price officially initiated an upward trend, and with a large increase in transactions, when its neckline resistance broke through, the transaction increased significantly, and the whole pattern was established. Head and shoulders bottom

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The analytical significance of the head and shoulders bottom is the same as that of the head and shoulders top. It tells us that the long-term trend in the past has been reversed, the stock price has fallen again and again, and the second low (head) is obviously higher than the previous one. Low, but quickly turned around and rebounded. The next time the stock price fell to the last low level, it has been supported and rebounded, reflecting that the bullish force is gradually changing the market's past trend of bearishness. When the high point resistance line (neckline) of the two rebounds is broken, it shows that the bullish side has completely knocked down the bearish side, and the buyer has completely controlled the entire market instead of the seller.

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The characteristics of the weekly head and shoulders bottom pattern

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The characteristics of the weekly head and shoulders bottom pattern, the stock price fell all the way in the early stage, and the trading volume continued to shrink, and the head and shoulders bottom pattern quickly built the first bottom pattern. After that, the stock price rebounded weakly. Due to the lack of effective cooperation from the trading volume, the stock price began to decline again, and reached the recent lowest point of 4.15 yuan. At this time, the trading volume of the head and shoulders bottom pattern shrank sharply.

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After the construction of the bottom patterns of many small K lines, the stock price began to rise, but the crawling speed slowed down, which showed the lack of motivation to do long. The last part of the bottom of the shoulder. After that, the stock price began to rise, and the trading volume began to increase. Although the rising method was not fast enough, the trading volume had already shown that the rise was only a matter of time, and the construction of the head-and-shoulders bottom pattern ended.

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As for the diagram of the head and shoulders bottom k-line pattern, this article is introduced here. Generally speaking, the head and shoulders bottom k-line is a reference graphic for buying signals. Here, we must pay attention to the effectiveness of the graphic. In actual transactions, it is necessary to refer to the market environment, individual stock conditions and other indicators, and do not blindly trust a single indicator to conduct transactions.