NYMEX:CL1! Light Crude Oil Futures
see chart, this has a very good chance of playing out as shown. Bottom for oil , 36 anyone?
Yes I was not trading this pattern, just following it, and was searching for a pattern definition just this morning also, inconclusive, and could not find any HS at a market bottom or at a bear run trend. And inverted HS yes, but not regular HAS at bear market trend conclusion, or other. IF ANYONE HAS FOUND SUCH A PATTERN EXAMPLE, PLEASE POST IT.
There is one rule that applies for head and shoulders. Whatever direction you enter an HS, you exit opposite. Downtrend into the HS here, uptrend out of it after the right shoulder connects to the neckline. Gold is forming similar now right shoulder, and has an increasing neckline. I like the cypher in green here . If you look closely the left shoulder and head had similar cyphers within them. I think this pattern is very reliable, and I will be going long OIL as we slide a bit further down the right shoulder. Be careful though, it may not complete the the neckline levels, and worst of all, it may overshoot it, so if you are trying to time and entry for best performance here be careful. Plenty of time to catch this rise, and it should be a strong one.