Would this be considered a good forming of head and shoulders for EURUSD?
Let me know what you think.
yes… looks to be… and a short is in touch with market sentiment right now.
Agreed; there are a few places one could take a short (or long; these also function as support levels, depending), each more conservative than the last:
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You can wait for a bearish reversal candlestick pattern (two of the most statistically significant for H&S shoulders are dark cloud cover and bearish engulfing). In fact, you’ve got one of the two (we’ll see where things stand at 0700) brewing right now.
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You can wait for the neckline to break - currently right around 147. This is a neckline drawing that takes into account the lower shadows of the candlesticks that make up the troughs between the shoulders.
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You can wait for a break of the horizontal support zone that has received a few touches (08/27 @ 0300 and 1100-1300; 08/28 @ 1300) this week: the level to break here is 146.72.
Be aware of the US consumer spending release if you’re looking to play this: out at 0830 today.
Well, it looks like it did what I wanted it to do. I got in around the top arrow, and got out at the bottom arrow. I Waited untill it in my favor about 15 pips them put a 30 pip stop loss on the trade and a TP that was’nt reached. (1.4636). I did however get out soon after the candle closed.
The best part is I had a nice nap during all the action and was able to close 10 pips from my strike before the turn around.
