HEAD AND SHOULDER PATTERN ON GBP/JPY - June 2020
YO TRADERS,
This is just an educational post.
Just thought of sharing how this HnS pattern formed and moved in the direction as expected. The video recorded is self explanatory on the formation of the pattern (Left shoulder - Head - Right Shoulder) formed between 3rd June 2020 and 11th June 2020.
As you can see in the video this is perfect HnS pattern forming on the 4H pattern. While this pattern is a perfect text book example, HnS patterns do not always turn up like these. But when they do its important to make the most of it.
After taking entry at the Neckline and price rejection the price moved 450+ pips in the downward direction before moving up again from the daily trendline. This is a positional trade and to achieve the max out of this you had to hold on to this trade for at least 10 days. The best way to maximise this was to use a trailing stop and then chill.
Hence, its always important to look out for such patterns being formed and most importantly identify them.
The no of trades you take are not important but the quality of one trade and riding on the profitable trade like this can make you a successful trader.
Hope this was useful.
Please like, share, comment and follow.
Thanks
Madtradex
This is just an educational post.
Just thought of sharing how this HnS pattern formed and moved in the direction as expected. The video recorded is self explanatory on the formation of the pattern (Left shoulder - Head - Right Shoulder) formed between 3rd June 2020 and 11th June 2020.
As you can see in the video this is perfect HnS pattern forming on the 4H pattern. While this pattern is a perfect text book example, HnS patterns do not always turn up like these. But when they do its important to make the most of it.
After taking entry at the Neckline and price rejection the price moved 450+ pips in the downward direction before moving up again from the daily trendline. This is a positional trade and to achieve the max out of this you had to hold on to this trade for at least 10 days. The best way to maximise this was to use a trailing stop and then chill.
Hence, its always important to look out for such patterns being formed and most importantly identify them.
The no of trades you take are not important but the quality of one trade and riding on the profitable trade like this can make you a successful trader.
Hope this was useful.
Please like, share, comment and follow.
Thanks
Madtradex
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