Is it a qualified Head and Shoulder Pattern?

Is it a qualified Head and Shoulder Pattern ? Please comment.

Daily chart:


I suppose you could call it that, but any significance in my opinion is overruled by the obvious support area price is now at. I don’t trade H&S patterns myself, so I can’t claim to be expert in them, but I think you may have missed the break of the right shoulder for a short entry anyway?

Think the right shoulder didn’t go far enough for it to be a true H&S

Here I have a video about H&S patterns.

It doesn’t really qualify as H&S because. its a topping pattern and your chart shows it has formed in the middle of the range.

However you could be just looking at the right shoulder of a much bigger H&S pattern. Or you can just look at it as a huge box range and the the break of your support level could take you down by the height of it anyways.


Thanks. It was very much helpful

I agree with AuthenticFX that the major horizontal support line is dominant and that you missed your short entry opportunity. I also think you missed one or two other bearish chart patterns before this one. You could call it a H&S, but I would not add my short at support. This is just my opinion.

a H&S could have a horizontal support … nothing wrong in that …of course downward slope would have been the best here. … but to me this looks valid.

…[B]you missed your short entry opportunity.[/B]

how come ? neckline is not broken here …how come I miss it ?

You are right, Godzilla… you would not have missed it: wait until the neckline has been broken…

http://www.dailyfx.com/forex_forum/tradera-s-tool-box/612736-head-shoulders-pattern.html

:slight_smile:

When I trade H/S I place my shorts when the ascending support line is broken. I don’t know which currency pair this is and without further analysis this comes down to a guess, but in this case to me the support line dominates the H&S pattern.

This is obvious example of H&S pattern. But I suppose the sharper are angles the more is a chance to hit your bearish conjecture. In your case it’s a bit stretched in horizontal but to make it more exactly you have to analyse timeframe you get this pattern on. The more is timeframe, the stronger is pattern

Update:

see how the pattern developed this week …thats a quite big fall


Head and shoulder pattern should be best traded after 1)…the left shoulder had formed,confirmed by the head . I would prefer to place my trade as the head is forming, creating the"cup" bottom pattern . You will get a smaller stop loss, just above the head, while your first take profit would be the neckline