MYR - 4 and a half years HEAD & HOULDERS BOTTOM
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Since 2014, my markets approach is to spot
trading opportunities based solely on the
development of
CLASSICAL CHART PATTERNS
🤝Let’s learn and grow together 🤝
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Hello Traders ✌
This is a quite difficult but didactically interesting scenario. Here we have a massive HEAD & SHOULDERS BOTTOM (weekly chart shown) which is basically impossible to trade effectively by itself. This because, generally speaking, a breakout of a large pattern like this deserves some more trust but, at the same time, identifying the precise moment to jump in is more difficult.
Moreover, this pattern is also a sloping one and therefore we also have to deal with the previous levels that formed it (left and right shoulder-highs in this case).
Luckily, daily chart greatly helps us because, exactly at the neckline and so around the breakout area, a perfect ASCENDING TRIANGLE is about to breakout either. This is offering us what is called a "launching pattern" that gives us more confidence in trusting an eventual breakout.
Be very careful with the remaining left shoulder-high to be breached before taking a first breath 😅
Entry Point and Initial Stop Loss depends on your Trading Plan Tactics and Money Management rules.
🔎🔎🔎 ALWAYS REMEMBER
"A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist"
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⚠ DISCLAIMER ⚠
The content is The Art Of Charting's personal opinion and it is posted purely for educational purpose and therefore it must not be taken as a direct or indirect investing recommendations or advices. Any action taken upon these information is at your own risk.
═════════════════════════════
Since 2014, my markets approach is to spot
trading opportunities based solely on the
development of
CLASSICAL CHART PATTERNS
🤝Let’s learn and grow together 🤝
══════════════════════════════
Hello Traders ✌
This is a quite difficult but didactically interesting scenario. Here we have a massive HEAD & SHOULDERS BOTTOM (weekly chart shown) which is basically impossible to trade effectively by itself. This because, generally speaking, a breakout of a large pattern like this deserves some more trust but, at the same time, identifying the precise moment to jump in is more difficult.
Moreover, this pattern is also a sloping one and therefore we also have to deal with the previous levels that formed it (left and right shoulder-highs in this case).
Luckily, daily chart greatly helps us because, exactly at the neckline and so around the breakout area, a perfect ASCENDING TRIANGLE is about to breakout either. This is offering us what is called a "launching pattern" that gives us more confidence in trusting an eventual breakout.
Be very careful with the remaining left shoulder-high to be breached before taking a first breath 😅
- Pattern Class: 🌕🌕🌕🌕🌑
- Target area: see chart
- Breakout area: see chart
Entry Point and Initial Stop Loss depends on your Trading Plan Tactics and Money Management rules.
🔎🔎🔎 ALWAYS REMEMBER
"A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist"
═════════════════════════════
⚠ DISCLAIMER ⚠
The content is The Art Of Charting's personal opinion and it is posted purely for educational purpose and therefore it must not be taken as a direct or indirect investing recommendations or advices. Any action taken upon these information is at your own risk.
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