The Handbook of Technical Analysis + Test Bank_ The Practitioner\'s Comprehensive Guide to Technical Analysis ( PDFDrive )

THE HAnDbook oF TECHnICAl AnAlysIs

figure  4.6 An Inverted Head and Shoulders Formation as Accumulation on the
EURUSD Chart.
Source: MetaTrader 4

figure  4.7 Head and Shoulders Formation as Distribution on the 15‐min EURUSD
Chart.
Source: MetaTrader 4

In Figure 4.7 we observe a standard head and shoulders pattern as distri-
bution on the 15‐min EURUSD chart. Notice the pattern forming a potentially
new consolidation after reaching its minimum price objective, that is, a 1:1
ratio projection of the height of the pattern, as measured from the neckline
breakout.