SHARE

A slowdown is a graphical pattern that signals the end of the ongoing upward trend. It is also called SHS in brief. The degree of reliability is high in formations and signals a trend change. This means that the rising trend is coming to an end and the falling trend will begin.

Although the upward movement can not continue anymore, the prices which can not exceed a certain point will decrease by the sale pressure. This declining pricing formation forms the left shoulder. With the downtrend of movement and the new purchases coming in from this level, the prices that once again show a bullish trend tend to rise above the price level at the beginning of the decline and enter the search for a new peak. After a point, the pricing, which no longer makes any further progress, is cut off. This is called the head region.

From here prices go down rapidly with the increase of sellers again. The first shoulder can also be expressed as the support neck neckline. This is the last time you try to price up from the support level. This third experiment ends at the summit of the previous summit, that is to say, the head of the formation, ideally at the summit of the left shoulder. Thus, the right shoulder is formed.

After the formation of the right shoulder, the price starts to move downwards and the formation is confirmed with the downward bending of the neckline. In this case, there is a possibility of a decrease motion as much as the difference between the neckline and head.

LEAVE A REPLY

Please enter your comment!
Please enter your name here