Head and Shoulders trading strategy!
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    Head and Shoulders trading strategy!

    This is one of the finest price action strategy , and the words of HEAD and SHoulders are self explanatory that any strategy which has head and shoulder(s) means 2 shoulders . This pattern can be found in many trades and you can trade this pattern with good risk : reward ratio. I will also be posting my charts , both old , and new ones so that you can learn this with me.

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    OLD CHART:


    This is an old chart of AUDJPY . It was already saved in my computer so i wanted to share it. You can see clearly that the risk : reward is so good. None of the strategy is 100% perfect. Sometimes we win , sometimes we loss. THe good thing of this strategy is that , we dont trade pairs, we trade setups .

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    Actually the header and shoulders pattern works very nicely and we need to understand that technical analysis works for the trader. But not only the technical analysis is important but also fundamental analysis is also very important.

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    based on the chart above, did it move down or up ? and how to indicate the next trend after it ? well, i am so interesting with head and shoulders, because several times i got the problem with this pattern

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    This forex market has many trading system that is making it to looks like complex business. I have heard many things about this head and shoulder, i only knew that it is a reversal trading system, but i have not seen open before until now. This is a good treading achievement on this site, it is helping my trading more than ever.

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    I analyzed this pair, AUD USD in the daily chart at 18th of November 2013 , and it really created a head and shoulder pattern. I predicted that market might creat a head and shoulder pattern , and yes , it did went accordingly. And now i want it to further go down and down.

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    Old chart, dated 20-11-2013, but still running in +++profits



    This was old chart of NZDUSD pair which i had analyzed in the daily time frame . This head and shoulders is still running and has already given me lots of pips and still the trade is running. Actually this pattern had one left shoulder which is common but the unique thing it had was that it had two right shoulder or you can say double top . Which made double confirmation for this trade.

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    There is a possibility in the EUR/USD pair in the daily time frame that there could be a head and shoulder pattern formation as there is 61.8% fibo and strong resistance exact on the right shoulder. ALso there is a bearish engulfing pattern and right shoulder in daily is exact on 50% retraement of weekly bearish candle. This all things are making this trade quadruple confirmation trade as well.
    In weekly, there is also an inside bar + pin bar.

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    Quote Originally Posted by newentry View Post
    based on the chart above, did it move down or up ? and how to indicate the next trend after it ? well, i am so interesting with head and shoulders, because several times i got the problem with this pattern
    there is no need for any trader to have problem with this chart pattern because it is one of the simplest chart pattern in the market. The 'head and shoulder' pattern is a reversal signal that signals the end of an uptrend and the begining of a downtrend.

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    Is this not what they are calling the hanging man on the first picture? This is part of the places that i get confuse with the trading of chart pattern. The examples above are many are not all of them say the same thing and represent these same way. In all of them, i still prefer the first one , it says it better, except hardly seen on real chart like that.

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