If you just learn one trading pattern, it must be the head and shoulders .
I think there is really no other pattern that provides such a high probability opportunity. It appears on all markets and on all timeframes.
In combination with a good neckline trendline , that's all you need.
Comments
FromForkToFingers
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Hey Rolf,
Great work! I entered there as well. However, I entered at 1.13733, close of the 4H candle. The last 4H candle broke through the neckline really early. Where did you enter? And if you did not enter, where would you enter? I always wait for the close of the candles, but this has cost me a lot of pips that I missed just by playing save.
I am very eager to hear your response, thanks so much. And thank you for providing great ideas :)
livethedream
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@FromForkToFingers, Better entry on this would be close of the 1hr candle 1394 as the pattern was complete and ripe fro a break to the down side. Measured move is top of head to neckline 50 points so t/p would be 50 points from neckline with a tight stop you can get 1:5 r/r
FromForkToFingers
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@livethedream, I realized it after, correct! If I took a look at the 1H candle, I could get a great profit ... not sure why I ignored it and focused on the D and 4H chart only. Great feedback, thank you!
Tradeciety
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I traded this on the 1h on the break of the neckline
davidleekuanyong
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Good day Rolf, i have a question, do you usually enter on retracement or at market price when there is a trade signal?
Tradeciety
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@davidleekuanyong, both are valid setups. You'll not always get a retracement but a retest of a neckline can be a great additional confirmation
Great work! I entered there as well. However, I entered at 1.13733, close of the 4H candle. The last 4H candle broke through the neckline really early. Where did you enter? And if you did not enter, where would you enter? I always wait for the close of the candles, but this has cost me a lot of pips that I missed just by playing save.
I am very eager to hear your response, thanks so much. And thank you for providing great ideas :)