Head and Shoulders - Crude and Gold

This is a discussion on Head and Shoulders - Crude and Gold within the Technical Analysis forums, part of the Methods category; Something I have been musing over recently, regarding price action patterns which are so blatant that every man his dog ...

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Old Oct 9, 2007, 3:14pm   #1
Joined Nov 2005
Head and Shoulders - Crude and Gold

Something I have been musing over recently, regarding price action patterns which are so blatant that every man his dog 'spot' them.
However when they are so obvious the chances of them manifesting are minimised, the 'big boys' thrive on these opportunities to catch us retailers in false breakout/breakdowns. Afterall, the neck line is considered support zones and one would look for orders contrary to the pattern.

Price action traders; what would you do in this instance?

Would you trade these patterns attached?
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Old Oct 9, 2007, 3:38pm   #2
 
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Originally Posted by smbtnt View Post
Something I have been musing over recently, regarding price action patterns which are so blatant that every man his dog 'spot' them.
However when they are so obvious the chances of them manifesting are minimised, the 'big boys' thrive on these opportunities to catch us retailers in false breakout/breakdowns. Afterall, the neck line is considered support zones and one would look for orders contrary to the pattern.

Price action traders; what would you do in this instance?

Would you trade these patterns attached?
I think the case for falls in oil is quite compelling. However I'm not so convinced about gold, I would wait for a breach of previous lows. I guess we coudl be due for a pullback after such a strong price move upwards, but I would see this as a consolidation period rather than a head & shoulders.
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Old Oct 9, 2007, 3:47pm   #3
Joined Jan 2003
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Originally Posted by smbtnt View Post
Something I have been musing over recently, regarding price action patterns which are so blatant that every man his dog 'spot' them.
However when they are so obvious the chances of them manifesting are minimised, the 'big boys' thrive on these opportunities to catch us retailers in false breakout/breakdowns. Afterall, the neck line is considered support zones and one would look for orders contrary to the pattern.

Price action traders; what would you do in this instance?

Would you trade these patterns attached?
if the neckline breaks thus confirming set up,wait for a retest of neckline from below to sell into.If continues run above neckline false signal,"traders remorse" and therefore go long....
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