I would like to see a retouch of the neckline to try a short here, it may or may not happen but if it does retouch the neckline Ill be targeting the 1.7800 area.
Comments
ArtofFX
⋅
Well the way I see it. The Head and shoulder had a clear retest of the neckline. The trade is now set to +5 pips and risk free. You can call it a head and shoulders, bumping into resistance, or just the weekly candle is deciding to play out. All 3 bearish signs. All 3 valid
dojitrader
⋅
Understandable So, the question becomes is your trade working because of the H & S or
simply reacting to support and resistance and/or the trend line.
It's important for me to understand so a valid analysis of the probabilities can be accounted.
Thanks for your thoughts !
ArtofFX
⋅
Now is when I would attempt a short position, it is retesting the underside of the trend line/neckline
ArtofFX
⋅
Aye, in my experience the most unorthodox Head and Shoulders have the best chance of playing out, and the more symmetrical the less you will see them work. In fact I prefer to long off symmetrical head and shoulders necklines instead of short. Regardless you may be correct and I would only open a trade on the retouch of the neckline to maximize risk vs reward potential.
dojitrader
⋅
Based on my pattern rules this is not symmetrical enough, and the right shoulder much to high to be a H & S
BUT, selling just below the big figure is probably a good trade just based on support and resistance.
With the neckline so steep it is difficult to get a measured moved - measured, too.