Head and Shoulders is one of the most reliable patterns in trading. You could find the stats on this - I've long forgotten them.
Many H&S pattern fail and you have to be prepared to take controlled affordable losses when engaging them. But when they do fall in your favour, they could be big earners.
As always, these patterns do not 'predict' - they create probabilities. For every estimate on probability in one direction there is a residual probability that it won't work for you. That's where the stop-loss comes in.
Strang things can happen with these - based on experience. 1 - the pattern fails completely. 2 - a second right shoulder develops (usually in bullish markets). 3 - price stalls in a range for a long time.
Disclaimers: This is not advice or encouragement to trade securities on live accounts. Chart positions shown are not suggestions. No predictions and no guarantees supplied or implied. Heavy losses can be expected if trading live accounts. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
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Where we are now. Possibly a second right shoulder may develop. This is something I mentioned before, that happens in raging bull markets.
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Defibrillator time! 🤣😂
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I think the important point is here is that bearish head and shoulders patterns do fail. My experience is that they are more likely to succeed near to some new top of a market.
@KuberPriya Most traders are trading support and resistance and most are losing money. If you don't understand why then feel free to watch my videos. 👍
@StewySongs, I agree. Support and resistance are sometimes okay. But I've noticed in the last year that they're working less well as a trading principle.
itsbs
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@StewySongs, I couldn't find your videos, could you link them for me? Your YT channel only had you singing (good pipes by the way!).
Captain_Walker
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@itsbs, I can't find them easily either. From my profile scroll through whatever I've posted over the months. Or expand all tags and select 'Education' or 'Educational' - those pick up most of the videos.
Find an OB with a hs and zoom into 1 min to fine tune, take with 1% risk, sl no bigger than 5 pips.... And watch... Either u lose 1 % or potentially make massive massive returns... 1:30, +.... 1:80...?