Really a good post but it should have been posted for XAUUSD as it has formed a perfect H&S. In case of XAUUSD I would prefer option no.1 sell at the retest and i think it has already retested on 1H.
Saeed966
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@anand1988 Yes of course, but this is an educational post. I will draw another tutorial template on another chart
WadeYendall
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Interesting post. This is exactly what messes up new traders. They see a clear pattern like this and take the trade but then get whipsawed. Best play IMO is to identify the pattern but wait for confirmation with confirmed higher high or a confirmed lower low. Do not enter a trade just because price crosses the neckline.
Saeed966
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@WadeYendall If you draw the pattern correctly, wait for the pattern to be broken, with a correction, whether buy or sell
At all depends on your candle sticks and what they are telling you. But, I would wait for the retest and confirmation this way if it turns into a fakeout then you won’t miss that trade as long as it has confirmation as well. This way you insure you get in on either the retest or fakeout after confirmation. This doesn’t mean you will win the trade though. Just increases your chance of profit rather than loss. For best chances of profit is to backtest it on all the pairs you trade and find the one that has a higher win precentage.