Hello traders,
Sometimes when constructing a trade I find 2 possible trades. Let me explain. You identify a head and shoulders forming while a inverted head and shoulders is forming as well at the same time. Which ever gets triggered (surpasses the neckline) first is the one I go with. And when I mean trigger I mean it hits my buy or sell stop order.
Have you had something similar to this happen to you?
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Yes, this is an idea which has interested me for a long time. Its possible to find patterns embedded within patterns which indicate potential for dramatic price movement in opposite directions.
Once this possibility is realised, its inevitable to focus in on patterns which take shorter and shorter times to form - head-and-shoulders take multiple bars on any time-frame.
And eventually you are looking so closely at the chart that a single candlestick will do - the high suggests a buy price and the low a sell price. Which is where I am now…
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i hope (and trust!) you’re talking about something like a daily candle/bar, if you’re using breakouts of its high/low to suggest entry-levels, rather than something like a 15-minute one?! 
D1 would normally be my usual time-frame, my usual preference. But I am experimenting with H1. Actually I am using the 0700 bar of GBP/USD to give buy and sell order prices from the bar high and low. I have a romantic idea that some days I will get aboard a rocket ship going to 10 x the bar range.
And if luck should have it that both orders are triggered then I shall simply hold both, and wait and wait for price to get back to the mid-point of the bar range, when I shall disembark, dusty from the journey but unharmed. We shall see…
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well, this is a 1-hour opening-range breakout system, then? but using the Frankfurt opening hour with Cable (rather than the Frankfurt opening hour with the Euro or the London opening hour with Cable)?
indeed - looking forward to hearing! all sounds perfectly reasonable and logical, though? wishing you well with it
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Cheers. Yes, its an ORB set-up, setting entry orders 0800 London time. GBP/USD shows a dramatic morning upsurge in ATR - intra-day its like looking at a heart monitor. I don’t plan to exit the trades on any time-table though I will not be carrying pending untriggered orders into the weekend.
I’ve already dabbled with this simple strategy on a demo account. I thought if this goes well enough for a couple of weeks with real money (very small position sizes) I’ll give it its own thread. After that point I will want to be considering larger position sizes and potentially bringing in other pairs…
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Also reflect on possibly using different tactics for with-trend single positions v’s counter-trend, etc. etc.
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yes - with-trend single positions must “surely” (lol!) have both higher trading-frequency and a higher win-rate? though even if both are true, of course that still doesn’t necessarily make them more profitable (if, for example, reversals run further on average)?
interesting stuff, look forward to hearing more
Well, there are sometimes when different indicators or different trading strategies suggest generate different signals, but the example that you made was actually a mistake. a head and shoulder pattern is formed at the end of a bullish wave, while a reversed head and shoulder is formed at the end of a bearish wave, so, both of them can not be issued at the same time, or if they are formed at different timeframes, it means that the short movement of the market is different than the main wave, in such situation, you should count on the bigger one.