nice head and shoulders pattern on weakening market
Updated
hey traders,
on pound new zealand we have a very nice head and shoulders formation.
I remember that many years ago, when I just started to learn trading patterns,
I saw such illustrations of head and shoulders pattern in trading books.
Watching this pair on a 4 hour chart we see that the market has recently approached 1.94 level.
Looking left we see that it is a significant level of structure + rsi shows us clear divergence.
Market leaves us clues that with high probability we will see a retracement.
As always with head and shoulders we wait for a bearish violation of a neckline and sell only after the market closes below the line.
The initial target is based on pattern range.
Stop is above head.
Good luck!
Comment
the market respects the supportComment
market is going downTrade closed: target reached
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