dojitrader
Short

Potential Double Top At Stiff Resistance

FX:NZDUSD   New Zealand Dollar/U.S. Dollar
126 1 1
84.00/85.00 has been rejected 7 times in the last 18 months, albeit a couple of times with false breakouts, so I'm looking to take the trade if we get a double top with divergence. And, I do see the possibility of a right shoulder forming. *Not very symmetrical*
I'm not a big advocate of head & shoulders they seem to appear like UFO's. So, I have very rigid rules for trading them.
Should this trade go as planned it will be worth watching for longer term profits and additional shorts on the break/retest
of the neckline. First things first ! A good short entry with divergence ~
dojitrader
3 years ago
One of the many reasons I do not like H&S patterns unless they fit the precise rules of "break below AND Close below" deep enough to require a retest of what is now resistance. Simply selling the break can get you into all kinds of trouble because you just don't know where to put the stop on a false breakdown that might turn around again and drop like a rock.
Thinking of trading the top of the range, should we get there. So, I'll leave this active for now.
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