Head Resistance: 1.93000
Neckline Support: 1.90000
Profit target: 1.87000
Its a 300 pips profit!
This is my strategy for trading Head and Shoulder Patterns. Take it with a pinch of salt! If you have any recommendations on how I can improve, please do comment here! :)
When to enter:
AFTER it breaks through neckline, it should retest the 1.90000 again.
66% of my position will be in 1st Position
34% of my position will in 2nd Position
SL at 1.90600 (60 pips)
1st TP: 50% of the pattern (150 pips) at 1.88500
2nd TP 90% of the pattern (270 pips) at 1.87300
What I learned from so far:
If the right shoulder is shorter than the left shoulder, the pattern is stronger
If the right shoulder extends further than the left shoulder does, the pattern is stronger
Patterns have a 75% - 80% chance of succeeding (assuming it breaks through neckline)
Good luck guys! May the pips be with you!