but not least, the head and shoulders is best traded on the 4-hour chart or higher. This, of course, assumes that you have become a proficient price action trader. The correct measurement in the illustration above covers the entire flag pole, not just the price action leading up to the consolidation. However, I have found that the best price structures tend to form on the daily time frame. Those who are failures, I have made failures. While that may occasionally work out in your favor, a much better approach is to determine whether or not that objective lines up with a pre-existing key level. I am not a machine though I work with the precision of a machine plus the intelligence of a person. Super Simple yet Powerful Scalping Strategy (Most traders are blown away how simple this really is!). For forex trading social network more information about trend lines visit: m laquoAlways trade with the trend raquo. The Head and Shoulders (and Inverse).
The three points in the illustration above are clearly not inline with the upper and lower levels of consolidation, which invalidates the formation in terms of tradability. These are the formations that you can rely on to generate profits on a consistent basis. The illustration below shows price action that you would want to ignore completely. Only once support or resistance is broken should you begin to identify possible targets. So if you enjoy trading technical patterns, as I do, be sure to give some consideration to the three we just covered; they truly are all you need to become consistently profitable. You dont have to know and trade every price structure available in order to make consistent gains as a Forex trader. And in this Free download, Forex, candlestick, chart, pattern PDF Version, you will learn the below. In any kind of trading approach, including the Japanese Candlestick. By 2010, I had not only become proficient in trading them, but I had also developed the intuition necessary to identify the most profitable formations something that can only be had after years of practice.
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Proof is attached!