Is Head and Shoulders Oil Trading Pattern Bullish or Bearish?

Example of Head and Shoulders Oil Trading Chart Pattern

Head & Shoulders Oil Trading Chart Pattern is a Bearish Crude Oil Trading Pattern - Head and Shoulders Pattern is a Bearish Oil Trading Signal Pattern

Summary:

• This Head & Shoulders Oil Trading Pattern forms after an extended move upwards - oil upward trend
• This Head & Shoulders Oil Trading Chart Pattern formation indicates that there will be a reversal in crude oil market
• This Head & Shoulders Oil Trading Pattern formation resembles a head with shoulders thus its name.
• To draw the neck-line we use chart point 1 & point 2 as shown on the crude oil trading example explained below. We also extend this line in both directions.
• We sell when crude oil price breaks-out below neck-line: as explained on the crude oil trading example explained below.

What Happens To Oil Trading Price Action After a Head and Shoulders Oil Trading Chart Pattern?

Or the head and shoulders crude oil pattern can also form on a slanting neck line, like the crude oil trading example explained below:

What Happens To Oil Trading Price Action After a Head and Shoulders Oil Trading Chart Pattern?

Example of Head and Shoulders Oil Trading Pattern on a Oil Trading Chart

Analysis of Head and Shoulders Oil Trading Chart Pattern

This Head & Shoulders Oil Trading Chart Pattern can also be formed on a slanting neck line, like the head and shoulders crude oil trading pattern examples above, the neck-line does not have to be necessarily horizontal.