#headandshoulders - How to use it, and how not!

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Good morning,

from my side (cause I do see it happening again and again), a little reminder of how Head & Shoulders is looking like and how you should draw it. Too often misused and misunderstood, I don´t wonder why most of the trader´s or technical analyst youngsters are not successfull trying to trade this. The same rules apply to an inverted Head & Shoulders . It always was and will always stay a reversal pattern formation and using it differently (wrong) is weakening breakouts and targets.
I hope you enjoy this and leave me a like.

Warm regards,
Good luck in trading!
seba26-77 seba26-77
I think your last graphic fits best with my chart;)
+1 Reply
The cryptocommunity uses the H&S pattern way too much, a post like this was a really good idea! Thanks :)
@phenixity, very very true. Thank you dear!
Very nice post and description my friend.
+1 Reply