Forex Strategy Video: Head and Shoulders Patterns on AUDUSD, S&P 500, Others
• Head-and-Shoulders patterns are ubiquitous and high-potential technical patterns
• Yet, proper form and fuel for follow through are critical to successfully trading these setups
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There are few better reversal patterns to classical technical traders than Head-and-Shoulders setups. However, proper development and follow through are critical in seeing these trades play out successfully. A lack of trend to actually reverse and tangible progress in the turn (breaking the neckline) to elevate the effort beyond a blind attempt to 'pick a top or bottom' are essential yet frequently overlooked requirements. In today's Strategy Video, we discuss the finer points of a head-and-shoulders pattern, the elements that help the it unfold properly and current examples (AUDUSD, EURGBP, GBPAUD, EURAUD, NZDUSD and S&P 500).
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.