📈 💲Technical Analysis 101: Head, Shoulders, Knees and Toes! 👣 📈

I will leave my typical trading trials and tribulations aside in this post and will educate the community on some Technical Analysis basics.

Namely:

Head, Shoulders, Knees and Toes.

I find that the mnemonic 'Hairy Shrimp Kills Tarantula' helps me to remember these four unique terms.

This song does a pretty good job too:

Head

Note:  The beard serves to make the 'Head' more identifiable. It's of course completely unnecessary. Feel free to add a Goatee, a Mohawk or Dreadlocks if you would prefer. Technical Analysis is all about making you feel comfortable.

The key to identifying a 'Head' is to make sure that the neckline is realistic.

Note how I aligned the neckline with the nearest and lowest Candlestick bottom-wicks.

This assures a plausible proportion, such that once you've correctly drawn eyes, a nose and a mouth, it will be impossible to miss the 'Head'.

To perfect the drawing of eyes, you have to ensure that mini-candles form the pupils, and that these pupils are the same color.

Charts always adhere to classical aesthetic, this is often manifested through color coordination.

The nose has to have a U shape, with both ends of the nose connected to the lowest Candlestick bottom-wicks.

Shoulders

This is pretty basic, no further explanation needed.

Except that it's my left and my right - not yours!

Now that you can correctly draw a 'Head' and a pair of 'Shoulders', it's time to step things up!

Head 'n Shoulders

Spotting a correct 'Head 'n Shoulders' pattern is imperative to successful and empirical Technical Analysis.

There's an old Forex adage I like to recite:

"What human doesn't have a Head 'n Shoulders"

Similarly:

What early breakout or bearish retracement hasn't been spotted with Head 'n Shoulders?

Hint: None.

Knees

"You must crawl before you walk. And you need knees for that" - Guy de Rothschild

The key to correct knee drawing is to be at one with your inner self.

Disclaimer: Any financial loss incurred through following this guide will be the result of incorrect knee drawing.

Toes

The key to mastering 'Toes' drawing, is to recognize that Chart Toes are not Human Toes.

The chart is a different entity altogether. 

Hence, 'Toes' do not have to be connected to a foot, nor do left and right 'Toe' sets have to be close to each other.

Knees 'n Toes

Now combine knees and toes in one diagram!

You should be beginning to see how these diagrams help identify strong buy/sell pressure.

I hope that you have found this post useful, and easy to understand!

Follow me at #satirechart and you'll be trading like George Soros in no time.