What is the figure shoulder head shoulder?

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La figura hombro cabeza hombro es una de las cifras más seguidas por inversores con más experiencia en los mercados de renta variable. Aún cuando esta denominación puede que no diga nada a los demás y muestre una especial sorpresa por la redacción de este post. Para que todos puedan comprender esta figura especial en la bolsa, será necesario aclarar de qué se trata, What is it for, what implications does it have, etc. Because this information can help investors invest their savings much more effectively than before.

Well, the shoulder head shoulder figure is none other than one of the Chartism figures that are studied in technical analysis and that can be used to access and exit a financial or cative guarantee with greater guarantees of success. Because in short it is a figure that occurs with certain frequency in assets that are listed on financial markets. To the point that it is the starting point to carry out a significant number of operations on the Stock Market. Above the implications of other minor figures that have less importance in the decision of small and medium investors.

The figure shoulder head shoulder is mainly used for anticipate a change in trend from bullish to bearish. With the advantage that it has a high level of reliability as a result of which it is achieved in most cases. To detect this type of movement in the markets, the best way is through a graph where the sequences that are formed in the HCH can be visualized. Sometimes it is not easy to understand and needs some experience on the part of investors.

HCH: how is it formed?

To fully understand what this important figure consists of, you have to understand how its training occurs. It is the most complex part of this procedure since it is an eminently visual concept that requires the experience of the users of the stock market. From this general perspective, it is based on forming a central bullish attempt which will be caused by a previous bullish attempt, even when characterized by its lesser intensity. To later develop another bullish movement with similar characteristics.

Once this relevant stage of the training procedure of the so-called shoulder head shoulder figure has been explained, it is time to achieve its connotations in the configuration of the prices of the selected financial assets. Because indeed, it will be very important to establish in which trend this figure appears. In this regard, it must be explained that arises when the market has an upward trend very well defined. As a result of this relevant characteristic, what is indicating to investors is that there is a high opportunity that the buying positions will prevail in the preference of the users.

Downward corrective stage

One of the most important aspects that the shoulder head shoulder figure is indicating is the tendency that can be formed after this movement. Well, in this regard it should be remembered that once this training is completed, leads to a downward corrective stage. This in practice and for you to understand more easily means that there will be a substantial change in the trend. From this dynamic, you will be able to anticipate your investment strategies with greater confidence that your objectives will be met. Because, decidedly, its reliability is very high and to the point that it is rarely wrong in the projections of the values analyzed from this part of the technical analysis.

On the other hand, it is also very important that you take into account from these moments that the figure shoulder head shoulder is formed by three maximums that they are very easy to identify in the charts. Where the first and the third have a very similar trajectory between them, while on the contrary in the second there is a greater rise in price training. Decidedly, the small and medium investors with more experience in any type of stock market operations will not have excessive problems to reach this point of the exhibition.

Structure of this training

Definitely, it will be very necessary to contemplate this very important part of the technical analysis. For this to develop correctly, there will be no choice but to check what some of the most relevant characteristics of this very relevant stock market figure are like. Well, one of the most decisive materializes because the contracting volume tends to reduce on the head, indicating a weakness in the trend. This is very important for small and medium investors, since they can detect this figure just by checking this data and it will give some other signal about the training of the shoulder, head, shoulder figure.

As in the third maximum, that is, the one known as the right shoulder, in which a sign of weakness in value. Estos movimientos, por tanto, pueden utilizarse para deshacer posiciones en los mercados de renta variable. Con un alto porcentaje de eso acertarás en la aplicación de esta decisión que debes de tomar en el mundo del mercado de valores. Más allá de otras consideraciones técnicas y tal vez además desde un punto de vista fundamental. Es una strategy muy práctica que puedes llevar a término de ahora en más con el fin primordial de rentabilizar tus ahorros de forma más eficaz que antes.

Inverted HCH figure

Sea cual sea el caso, la figura que es objeto de nuestro análisis en este post no puede confundirse con lo que es el hombro cabeza invertido. Y aún cuando se rige por las mismas características, seguramente no es lo mismo. Si no, por el contrario, es la réplica de este puesto que es un movimiento absolutamente opuesto como entenderás luego de esta explicación. Debido a que en efecto, la figura invertida se manifiesta en los suelos del mercado. Por consiguiente, no dude en ningún momento que debe ser interpretado como un change of trend from bearish to bullish. In other words, the opposite of what we are talking about.

In spite of everything, there is a clear coincidence between both figures and that resides in the fact that it is very complicated its correct identification up to second shoulder training. It is the opportune moment in which it becomes evident that this very special figure has been produced for all investor profiles. That is why, it is very important that you know the difference when it is an inverted figure or not. Because based on this data, you can use it to open or undo positions according to your personal interests.

Price variations

There is another aspect that can be very important for you to make a decision in your investment strategies. Because in reality, you must not forget that once the price goes down and the training neckline is crossed, prices begin to fall rapidly. Through movements very recognizable by all users. To the point that you can use it to make a profit in each of the operations that are carried out under this well-established strategy.

On the other hand, the shoulder head shoulder figure is very useful in all cases to detect a new sign of weakness. For this case, go from an uptrend to a bearish one in a very short time. And that, whatever the case, you can use it as long as you are very fast when analyzing this very important part of technical analysis. Because you must act with great agility if you do not want to miss the possibility of taking advantage of these trend changes.

Benefits of following this figure

This basic stock market figure can help you develop a well-established investment strategy that takes into account some of the advantages you can find in trading the stock markets. As an example, the following that we point out below.

• It is a movement considered as very reliable that will help you buy or market shares on the stock market with much greater guarantees of success in all operations.
• It is one of the most useful tools for detect a change in trend. With greater reliability than through other relevant figures within the technical analysis. Possibly with a more pronounced margin of error.
• Once you identify the figure shoulder head shoulder it will be easier to interpret it more easily than before. In this regard, a learning in its detection it will be more than important for the success of the analysis.
• It is a good strategy that you can use to develop purchases and sales in the stock markets. Not surprisingly, you will avoid any type of incidents or turbulence in the decisions that you are going to make from now on.
• And lastly, you can't forget that it is not a foolproof method either invest in the stock market, as some investors believe.