Head & Shoulders Pattern Trading

wafikjabra

Recruit
Messages
1
I have been extremely interested in this particular pattern for a couple of years now. I have read lots of materials (including encyclopaedia of chart patterns and others) but most of them talk about the same basic concept of trading. I have also spent many long hours on screen monitoring the various characteristics of this pattern and till date could not gain the proper confidence to trade this pattern. The beauty about this pattern however, it provides you with clear Entry, TP & SL levels and it has also a good success rate. I would like very much to further develop my trading skills in this field but I don't know how as yet.

I would highly & greatly appreciate the kind help of any experts in this field as in regard to the followings:-

1) Direction to obtain in-depth study to master this pattern.

2) Direction to other possible trading strategies &/or indicators (apart from volume) that can be used as an additional confirmation to this particular pattern or perhaps to reduce the failure cases of this pattern.
 

FringFX

Sergeant
Messages
391
Head and shoulders is just one of the many patterns that form in a chart, and like all of them, H & S is not fool-proof.

I am not sure there is an "in-depth" study or material pertaining to it. If there is, I have never hears nor seen one.

The best way to learn about patterns is to go through several thousand hours of chart time. If you pursue this endeavor, I am sure you will learn much more than what you initially intended to.
 

anthonyjon

Recruit
Messages
7
I would couple price action to confirm specific entry points for a head and shoulders pattern trading. If you want I can walk you through what I mean.
 

James A

Recruit
Messages
3
I have been extremely interested in this particular pattern for a couple of years now. I have read lots of materials (including encyclopaedia of chart patterns and others) but most of them talk about the same basic concept of trading. I have also spent many long hours on screen monitoring the various characteristics of this pattern and till date could not gain the proper confidence to trade this pattern. The beauty about this pattern however, it provides you with clear Entry, TP & SL levels and it has also a good success rate. I would like very much to further develop my trading skills in this field but I don't know how as yet.

I would highly & greatly appreciate the kind help of any experts in this field as in regard to the followings:-

1) Direction to obtain in-depth study to master this pattern.

2) Direction to other possible trading strategies &/or indicators (apart from volume) that can be used as an additional confirmation to this particular pattern or perhaps to reduce the failure cases of this pattern.
Hi wafikjabra

I found this very useful PDF ebook on pattern trading you can download.
http://www.zacks.com/chartpatternstrader/CPGuide.pdf
Hope it's of some help
James
 

TadS

Private
Messages
21
When trading distinct chart patterns, such as head and shoulders, it is crucial to look for confirmation before entering a trade. In other words, don't try to pick the top of the head or one of the shoulders but wait for the move to actually occur before entering a position. This should decrease the amount of false trades and increase your winning percentage.

When you are staring at a chart all day looking for very specific patterns, your mind may trick you into seeing things that aren't actually there.
 

elisab

Corporal
Messages
215
The head and shoulder is a widely used figure in technical analysis, but I am convinced that if there was a statistic on its reliability, the result would be rather disappointing. I prefer to combine this figure with the Elliott Wave and other price patterns. This figure alone is not satisfying for me.
 

elisab

Corporal
Messages
215
A potential bullish head and shoulder on UsdChf. It 's a good starting point, but from here I begin the various analysis (inter market, cyclical, seasonal, oscillators, etc ...)usdchf2.gif
 
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