Technical analysis by YuKiRa_aa about Symbol PAXG: Sell recommendation (10/26/2025)

The basic rules and features of the Shoulder Head Shoulder (OBO) formation are as follows: Basic OBO Rules The OBO pattern usually appears at the end of an uptrend and is considered a reliable indicator that the trend will turn downward (bear signal). * Prerequisite (Trend): For the formation to be valid, there must first be a clear upward trend on the chart. OBO marks the end of this trend. * Sol Shoulder: It is the first peak in an uptrend. The price rises slightly and then retreats. * Head: After the pullback, the price rises higher than the peak of the sol shoulder, forming the highest peak of the formation, and retreats again. * Right Shoulder: After the Head pullback, the price rises again, but this time it fails to reach the top of the Head and starts to pull back. Shoulders Height Rules * Head: It is the highest peak point in the formation. It should be higher than both the Sol Shoulder and the Right Shoulder. * Shoulders (Sol and Right): * Ideally, the Sol Shoulder and Right Shoulder peaks should be close to each other. * As a rule: The peak of the Right Shoulder must remain lower than the peak of the Head. Otherwise, a top crossing the top of the Head could indicate a continuation of the trend (a new high top). *Small Differences: The right shoulder may be slightly higher or slightly lower than shoulder sol. This does not completely ruin the validity of the pattern, but the ideal structure is levels close to each other. If the right shoulder remains much lower than the sol shoulder, it may indicate an early onset of selling pressure, increasing the strength of the signal. Completion of the Formation (Neckline) * Neckline: Sol is the line connecting the bottom point between the shoulder and the Head and the bottom point between the Head and the Right shoulder. This line acts as a support level. * Confirmation: In order for the formation to be finalized and a sell signal to be generated, the price must break the Neckline downwards. This breakout is usually confirmed by an increase in volume. If you analyze the chart in the image according to these rules, you can see more clearly whether the formation is completed or not. As it stands now, the potential right shoulder is nearing completion and a neckline breakout could be expected. Note: The Reverse Head and Shoulders (TOBO) formation is the opposite of these rules and gives a bullish signal (bull signal) at the end of the downtrend.