Head and shoulders
Head and Shoulders
· H&S is top reversal pattern = means that a lot of times trend will ended up in H&S before reversal.
· I will only trade H&S on HTF. They don’t play out so often on STF.
· Volume should be highest on the left shoulder.
· After breaking neckline you wan’t to see massive increase in volume.
· Short is not taken until breaking neckline.
· Above right shoulder or key level.
· Main TP is distance from top of the head to the neckline.
· If you have any key level that is closer than your TP, take some profits here and move SL to BE.