USD / JPY How to trade Head & Shoulders?

First of all, head and shoulders is a reversing trend formation!
Second, there are two types of formations - Head and Shoulders and Reverse Head and Shoulders!
Head and Shoulders may be at the end of an uptrend, while Reverse Head and Shoulders may be at the end of downtrend!

As i mentioned, H&Sh is reversing trend formation! So if we talk about uptrend, we have to see Head & Shoulder, not Reverse Head and Shoulder!
In USDJPY case, we have Reverse H&Sh.

So, how to trade it?

Draw a neck line on the left and right shoulder.
Wait until neckline break and test it. Always is better to test the line.
(Sometimes the price will not allow for a line test, then we may just miss trading the figure.)
If we have a good entry point, we are making a deal.
There are two places to put the Stop Loss:
1. Below right shoulder - more secure!
2. Below neckline breakpoint - less secure!

Something very important - Stop loss is always placed under the tail of the candles, so before entering into a deal, check that the risk / profit ratio is profitable!

Take Profit - Measure the height of the head and project at the breakthrough point,
not the point of entry into the deal (there is a difference)! Take out 10% and put the Take Profit!

Thank you for your time!
If you like my work, please Like, Subscribe and leave your comments!
Thank you, once again!