Looking for the Neckline to breakdown capturing profits at T1 and possible T2.
Proprietary Options Play: DEC PUTS, Strike:33
Comments
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great stuff ! ;-) personally I draw the neckline of a potential H&S after the price formed a possible right shoulder.
I connect then both lows (the first one after the formation of the left shoulder, the second low after the Head ).
When the price trades through the neckline very often it retraces and retests it. That retest is for me a good entry point with a stop just above the neckline on a conservative side or being more aggressive above the top of the right shoulder. At least I would get a confirmation of this pattern. I think H&S are the most common early false signals (from my own experience).
personally I draw the neckline of a potential H&S after the price formed a possible right shoulder.
I connect then both lows (the first one after the formation of the left shoulder, the second low after the Head ).
When the price trades through the neckline very often it retraces and retests it. That retest is for me a good entry point with a stop just above the neckline on a conservative side or being more aggressive above the top of the right shoulder. At least I would get a confirmation of this pattern. I think H&S are the most common early false signals (from my own experience).
I like your presentation
cheers