Head and Shoulders Failure Pattern
Updated
Head and Shoulders is a two way pattern, it goes down most of the times and when it fails to go downwards it may break upwards to become a Head and Shoulders Failure Pattern.
Same as the Head and Shoulders pattern, you can measure the length of the head to find the target price from the breakout point, my approach in this case is a bit more conservative however.
For this particular example we only measure target from the right shoulder which gives us a higher success rate. This decision was also made based on the volume and current price action.
Entry $42,700
TP $55,500
SL $40,700
Risk Reward Ratio is 7.4
###NOT FINANCIAL ADVICE###
Same as the Head and Shoulders pattern, you can measure the length of the head to find the target price from the breakout point, my approach in this case is a bit more conservative however.
For this particular example we only measure target from the right shoulder which gives us a higher success rate. This decision was also made based on the volume and current price action.
Entry $42,700
TP $55,500
SL $40,700
Risk Reward Ratio is 7.4
###NOT FINANCIAL ADVICE###
Trade closed: target reached
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