Here are a simple example of what I like to see when a head and shoulders concern:
A clear and even better a strong trend, that suddenly decelerate when forming the head and shoulders
A clear lost of momentum (look at the MACD divergence
A clear pattern formation with a healty risk reward ratio (this time over 1 to 1.5
When you trade pairs do not have volume thats why you should look for this aditional confirmations.
A clear and even better a strong trend, that suddenly decelerate when forming the head and shoulders
A clear lost of momentum (look at the MACD divergence
A clear pattern formation with a healty risk reward ratio (this time over 1 to 1.5
When you trade pairs do not have volume thats why you should look for this aditional confirmations.