Possible Head & Shoulders Pattern Spotted on AUD/CAD
Updated
In this morning's KickStart PRO Morning Session, we found a great example of what could turn out to be a 'textbook' Head & Shoulders pattern.
The reason this is still just a potential Head & Shoulders, however, and not yet confirmed, is because, while we DO have the Left Shoulder (LS), the Head, and a clearly defined neckline, we do not yet have a definitely formed Right Shoulder (RS), though this is starting, nor do we have a break of the neckline, necessary for looking at this as a tradeable pattern.
We'll be watching this in the coming days to see how this forms.
The reason this is still just a potential Head & Shoulders, however, and not yet confirmed, is because, while we DO have the Left Shoulder (LS), the Head, and a clearly defined neckline, we do not yet have a definitely formed Right Shoulder (RS), though this is starting, nor do we have a break of the neckline, necessary for looking at this as a tradeable pattern.
We'll be watching this in the coming days to see how this forms.
Note
As of 02 Oct 2020 @ 08:02 GMT, we have now broken the neckline on AUD/CAD, thereby firmly establishing our Right Shoulder (RS) and as these were the final two criteria, we now have a confirmed Head & Shoulders pattern. The market is now retesting, the broken neckline, so I am looking for entry opportunities to short toward 0.9475 providing resistance holds.
Note
As of 5 Oct 2020, we appear to have made it about 60% of the way to the target, but then the market pulled back above the neckline, where it's been ever since. I am now awaiting a fresh break of the neckline to re-confirm, otherwise, I'll be looking to abandon this and chalk it up as a false H & S.. Will have to wait and see over the coming days.
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