I try to show an example of the signal Shoulder Head Shoulder, I found the ETF IHI which represents almost perfectly the figure of the shoulder head shoulder. Also, The calculation is made for a short position where the scope is the measure between the head stop and the resistance line and this height is taken for the take profit of the short position
Trading patterns is legit. But always wait for a breakout and a confirmation. We have there an HnS, clear in m15TF. A bearish Flag and an Engulfing in H4. This shows the pair's power is still favoring the bears.
Bought Aud Cad Earlier on the move up and exited on the retracement. This is looking like a Picture Perfect Inverse Head And Shoulders Pattern.
The Plan is to wait until price approaches support and confirm the reversal. You Can Confirm the Reversal In Many Ways including a Moving Average Crossover, Candlestick Analysis, Indicators and more.
So lets wait for...
Just something im seeing on the daily chart. Im thinking the daily pullback could create a Right Shoulder giving us a "Downward Leaning" Head and Shoulders Pattern.
Remember that if the Pattern is "Leaning Downward" , It is said to be considered MORE RELIABLE...
Lets see what happens next week!
Basic Market Structure and Pattern Behavior applied on every timeframe and any markets (stocks, crypto, fx, futures, indices etc).
Common Patterns I showed on the chart:
Double Bottom / Triple Bottom
Bull Flag / Bear Flag
Ascending Wedge / Descending Wedge / Expanding Wedge
Head and Shoulders / Inverted Head and Shoulders
Cup and Handle / ...
Well, there are three types of traders we can come across and all of them believe their method of trading yields them profits, be it using only indicators and price action (Technical analyst) or reacting to news whilst trading (fundamental analyst) or trading according to market sentiment (sentimental Analyst)!
In most circumstances we can only see that some...
Although our basic stock trading methodology is based on trend following, there are certain types of technical chart patterns we also trade. Of these, the head and shoulders is one of the most reliable and profitable types of technical trade setups. In this article, we will discuss how to identify the chart pattern and capitalize on it. Let’s begin by looking at a...
Really simple set up, training your eye to spot these patterns in my opinion is essential for developing consistency with your trades. After seeing the reversal, which using the 1H and especially 4H makes these easier to spot. You can see where the left shoulder has formed, aligning with the right shoulder on the 61.8 level. Other than that, we notice the area...
GOLD has a correlation to the strength of USD, as a risk-off asset investors seek haven in the event of Dollar weakness (USD falls > GOLD rises). I'm sure there's more to it than that, be sure to check it out online for yourself.
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The Daily timeframe is looking very clean when it comes to price action.
Having formed bearish MACD Divergence between...
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hey guys,
as you probably noticed I am a big fan on head and shoulders pattens :)
however, I dont trade all of them and this trading idea will be focused on a type of a H&S
that is better to exclude from you trading strategy.
so there are 6 types of H&S:
one with horizontal neckline,
one with rising neckline,
one with falling neckline
one inversed with...
Combination of valleys where the central one is lower than the left and the right troughs shapes the Inverse Head and Shoulders pattern.
Its a reversal pattern. Upside move should appear.
Watch Neckline to be broken for confirmation.
Target is equal to the depth of Head added to the Neckline breakout point.
