HI,
Look at the following image.Do you thinks it’s a head and shoulder pattern?If so,Are you going to trade with it or not?
Thanks
looks like it to me.
i would of taken the trade on the break of the shoulders lows, looks like a profitable trade
Do you think if we have more candles in shoulders it would be more stronger than this example?
It looks like H&S to me, but the right shoulder cuts too deeply for my taste. It’s indicative of exhaustion and I wouldn’t bother getting in. This only matters if you’re entering on the break of the neckline, which doesn’t happen until the 3rd bearish candle after the bullish candle in the right shoulder.
It is a H&S, I think it would be easier to recognize on a lower time frame.
You could view it as a great trading opportunity but not a classic H&S pattern, the reason I say this is because it look like there is large upward momentum, and an equally momentous retracement, giving good quick profits.
A further thought, I consider the H&S pattern as Elliot waves 3,4, 5 (1), when you see a H&S, look out to see if there is a wave 1 & 2 to start it off.