many different types of chart formations that a trader can study and incorporate into their setup arsenal. With that said, I tend to believe that a stop loss above the right shoulder is excessive. All price action carries with it a message. Open a short trade when the price action breaks the neck line downwards. By doing this, you mitigate the risk of having the market snap back on your position and stop you out for a loss. Then you need to determine the size of the inverse Head and Shoulders pattern and to apply it upwards starting from the breakout through the neck line. You can always go tighter if youd like as it all depends on what fits your trading style. Remember, trading 101 says that old resistance becomes new support and vice versa, and thats exactly what happened in the audusd chart above. Are you ready to start trading the head and shoulders reversal pattern?
Head and shoulders bitcoin
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