CL> example of head and shoulders pattern with neckline trigger

25 de mar. de 2021

Here is a head and shoulders pattern and how the neckline can be used as a trigger for either a short or long position.
Wait for neckline to declare itself as support or resistance.

2 possible scenarios:
1. Price breaks neckline (resistance currently) wait for retest of what would then be support to enter long position.
2. If price bounces down off neckline then enter a short position on candle close. No need to wait for confirmation because it has already been confirmed as resistance

Down wedge tells me we have more room to go up. But what happens at neckline is unknown. Follow the rules above, use proper risk management and you will be okay.

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Ms. Bunny

26 de mar. de 2021

Trade ativo

I ended up taking the long side. My entry target and stop are as shown. I have moved my stop since entry to the black support line as shown.