Becoming a Better Trader: High Probability Chart Patterns (Webinar)
Paul conducts webinars Tuesday – Friday each week. For details and a full line-up of upcoming live events, please see the DailyFX Webinar Calendar.
Today, we discussed high probability chart patterns. More specifically, the ‘head-and-shoulders’ formation and its variations which resemble the classic set-up but aren’t considered by textbook definition to be a valid H&S set-up. Markets are far from perfect, and neither are the sequences which make up the classic formation and its siblings.
An H&S can occur at various points in a trend, on all time-frames, and can be bullish or bearish depending on where they develop in context to the trend. We first examined the supply/demand dynamics which give this ‘silly-named’ pattern its firepower. They have been occurring long before they became known, and we took a look at one example which happened long, long before the head-and-shoulders pattern became popular.
In addition to the explanation of the pattern and looking at recent examples, we delved into how to execute a trade. When to enter, where to exit, and how to set price targets based on the size of the pattern.
All-in-all, the head-and-shoulders formations and price sequences which closely resemble them can lead to powerful moves in the market.
For full details, please see the video above.
---Written by Paul Robinson, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.