How to trade head and shoulders tops

04/11/2022 /

Original link: https://muyexi.im/ru-he-jiao-yi-tou-jian-ding/

Head-and-shoulders tops are a common price pattern, and here are 7 common types of trades.

1A, pressure level + head and shoulders

-STRATEGY-1A--RESISTANCE---HEAD---SHOULDERS-AT-LEVEL

Example

-STRATEGY--1--HEAD---SHOULDERS-AT-A-KEY-LEVEL

1B, support level + head and shoulders bottom

-STRATEGY-1B--SUPPORT---INVERSE-HEAD---SHOULDERS-AT-LEVEL

2A, pressure level + small level head and shoulders top

-STRATEGY-2A--RESISTANCE---CANDLESTICK---HEAD---SHOULDERS-INSIDE

Example

-STRATEGY--2.1--KEY-LEVEL---CANDLESTICK---HEAD---SHOULDERS-INSIDE

2B, support level + small level head and shoulders bottom

-STRATEGY-2B--SUPPORT---CANDLESTICK---INVERSE-HEAD---SHOULDERS-INSIDE

Example

-STRATEGY--2.2--KEY-LEVEL---CANDLESTICK---INVERSE-H-S-INSIDE

3A, downtrend + backtest + pressure head and shoulders

-STRATEGY-3A--DOWNTREND---PULLBACK-ENTRY---HEAD---SHOULDERS-INSIDE

Example: GBP/USD

-STRATEGY--3--TREND---PULLBACK--CANDLE---H-S-INSIDE

3B, uptrend + step back + support head and shoulders bottom

-STRATEGY-3B--UPTREND---PULLBACK-ENTRY---INVERSE-HEAD---SHOULDERS-INSIDE

4A, head and shoulders top + backtest + small-level top pattern

-STRATEGY-4A--HEAD---SHOULDERS---PULLBACK---INTRADAY-TREND-CHANGE

Example

-STRATEGY--4--H-S---PULLBACK-ENTRY---TREND-CHANGE-INSIDE

4B, head and shoulders bottom + step back + small level bottom pattern

-STRATEGY-4B--INVERSE-HEAD---SHOULDERS---PULLBACK---INTRADAY-TREND-CHANGE

5A, head and shoulders top + falling neckline + backtesting

-STRATEGY-5A--HEAD---SHOULDERS---SLANTED-NECKLINE---PULLBACK

Example

-STRATEGY--5--H-S---SLANTED-NECKLINE---PULLBACK-ENTRY---TREND-CHANGE-INSIDE

5B, head and shoulders bottom + rising neckline + stepping back

-STRATEGY-5B--INVERSE-HEAD---SHOULDERS---SLANTED-NECKLINE---PULLBACK

6A, head and shoulders top + right shoulder aggressive entry

-STRATEGY-6A--HEAD---SHOULDERS---RIGHT-SHOULDER-AGGRESSIVE-EARLY-ENTRY

6B, head and shoulders bottom + right click to enter the market aggressively

-STRATEGY-6B--INVERSE-HEAD---SHOULDERS---RIGHT-SHOULDER-AGGRESSIVE-EARLY-ENTRY

7A, head and shoulders top + right shoulder small level top pattern

-STRATEGY-7A--HEAD---SHOULDERS---RIGHT-SHOULDER-AGGRESSIVE-EARLY-ENTRY---INTRADAY-TREND-CHANGE

Example 1: $COST

-STRATEGY--7--H-S---RIGHT-SHOULDER-ENTRY---TREND-CHANGE-INSIDE-COST

Example 2: $PLUG

-STRATEGY--7--H-S---RIGHT-SHOULDER-ENTRY---TREND-CHANGE-INSIDE-PLUG

7B, head and shoulders bottom + right shoulder small level bottom pattern

-STRATEGY-7B--INVERSE-HEAD---SHOULDERS---RIGHT-SHOULDER-AGGRESSIVE-EARLY-ENTRY---INTRADAY-TREND-CHANGE

Markets are not perfect

THE-MARKET-IS-IMPERFECT

  1. Markets are imperfect, full of noise, and many times the patterns you identify are imperfect.
  2. Learn to find clues in noise and imperfection and trade.
  3. Always waiting for the perfect pattern will miss most of the trading opportunities.

Source: ULTIMATE Head And Shoulders Pattern Trading Course (PRICE ACTION MASTERY)

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