Currently watching this weekly 5 point m pattern in the shape of a crown reversal aka head shoulders, yet we are in a short term bullish trend. Thus these reversal patterns are only valid in a uptrend there’s no reversal in a range. So one has to be careful as the market will make head n shoulders pattern often and I’m sure ppl trades them without an established uptrend; doing so will be a losing trades.
So what we have is a bull ranging channel this is when price is making higher highs etc but within a range without much market direction so this pattern has potential to play out.
Looking at the monthly we see a bear spike in channel this is a bear market with a bull pull upwards into a channel . As the bulls try to take the market .
With increasing seller pressure the bulls are failing to escape it thus price stay within the channel .
In this channel we see the structure. With a clear rejection of the high at the head.
Also what brings the most value to the structure in my eyes isn’t the rejection of the high or the pattern but the stop hunts that are carried out with these patterns.
Infamous market tricks done by them to take you out. Is at the necktie as retail traders and pattern traders as taught is to sell at the necktie,
Where we see fake breakout to the low more than successful ones.
The market will approach the necktie only to bounce up and usually to test the right shoulder with the low momentum and with wicks as the wicks are from the sl orders being triggered from those who shorted at the necktie. And sometimes this action will cause an increase in mom if the market direction is bullish but we don’t see this here.
We see weekly volume decreasing at this fakeout with low mom and wicks We can sale at the bearish trendline and target the low. This move will break the regression of the weekly thus continuing the downside as NZD is dominant. Also expect a smaller bull pack at the necktie that won’t affect one if they enter the sale in the market current state.
Tips.
Wait for the second test of the pattern necktie as most of the time price will pull back on the first
HOW TO TRADE LIKE THEM -
So what we have is a bull ranging channel this is when price is making higher highs etc but within a range without much market direction so this pattern has potential to play out.
Looking at the monthly we see a bear spike in channel this is a bear market with a bull pull upwards into a channel . As the bulls try to take the market .
With increasing seller pressure the bulls are failing to escape it thus price stay within the channel .
In this channel we see the structure. With a clear rejection of the high at the head.
Also what brings the most value to the structure in my eyes isn’t the rejection of the high or the pattern but the stop hunts that are carried out with these patterns.
Infamous market tricks done by them to take you out. Is at the necktie as retail traders and pattern traders as taught is to sell at the necktie,
Where we see fake breakout to the low more than successful ones.
The market will approach the necktie only to bounce up and usually to test the right shoulder with the low momentum and with wicks as the wicks are from the sl orders being triggered from those who shorted at the necktie. And sometimes this action will cause an increase in mom if the market direction is bullish but we don’t see this here.
We see weekly volume decreasing at this fakeout with low mom and wicks We can sale at the bearish trendline and target the low. This move will break the regression of the weekly thus continuing the downside as NZD is dominant. Also expect a smaller bull pack at the necktie that won’t affect one if they enter the sale in the market current state.
Tips.
Wait for the second test of the pattern necktie as most of the time price will pull back on the first
HOW TO TRADE LIKE THEM -