" ALL ABOUT HEAD & SHOULDER CHART PATTERN"
~ This pattern is analogous to the human upper body
structure.
~ Credibility of this pattern is really high.
~ It consist of 3 types-
1. Head & Shoulder Top
2. Head & Shoulder Bottom
3. Head & Shoulder Continuation

1. Head & Shoulder Top:

~ It is used to take the bearish trade. While taking trade on the basis of this pattern. The prior trend should be an upward trend before the formation of this pattern takes place.

~ Risk to Reward ratio is high.

~ If we goes wrong SL will hit.

2. Head & Shoulder Bottom

~ It is also known as Inverted Head & Shoulder pattern. It is one of my favourite pattern. It is used to take bullish trade.

~ Prior trend should be downtrend or sideways before this pattern formation takes place.

3. Head & Shoulder Continuation

~ Prior trend should be an upward trend before the formation of this pattern takes place.

~ Risk to reward ratio is high.

~Stop Loss should be on the closing basis.

" All about BULLISH and BEARISH ENGULFING "
~ This pattern is one of the most common candlestick pattern yet sometimes people are not able to trade it properly.
~ They both are the trend reversal candlestick pattern.
~ It is a two-candle pattern.

Bullish Engulfing
~ In this pattern, a large bullish (green) candle completely engulfs the small bearish (red) candle

~ This pattern is credible only when it is formed at the bottom of the trend

~ Prior trend should be downtrend before the formation of this pattern take place

~ Generally, I have observed that downtrend should be of at least 12% to 15% before the formation of this pattern.

~ I never initiate the trade on the bullish engulfing pattern if the prior trend is bullish. I don't trade bullish engulfing as trend continuation pattern.

~ The accuracy of this pattern is nearly between 70% to 80%

~ Most of the time I trade bullish engulfing on daily chart.

~ Stop Loss is 1% below the low of bullish(green) candle.

~ SL is on the level basis not on the closing basis.

~ Sometimes a trader needs to use critical thinking skills while placing stop-loss and that comes with practice and time.

~ Target : I booked 30% of the quantity as soon as I achieved 6% to 8% return. My ultimate target is not more than 12% to 15%.