head and shoulers patterns - anybody like them?

[China Diapers]

Anybody actually trade head and shoulders patterns?

I see a lot of good looking candidates, especially on the short side, but they never seem to actually work, unless maybe you want to use a humongous stop for 1:1 R:R.

What's the secret?

 

[Black Swan]

Anybody actually trade head and shoulders patterns?

I see a lot of good looking candidates, especially on the short side, but they never seem to actually work, unless maybe you want to use a humongous stop for 1:1 R:R.

What's the secret?

Never had any success with those kinda patterns, having said that I actually rate the auto chartist package even though I don't use it. Flags up pennants, flags, bearish engulf etc..

 

[China Diapers]

Pennants and flags I can relate to, it's all about consolidation patterns.

I am an enthusiast of Technical Analysis of Stock and Trends by Macgee, and he bangs on about head and shoulders patterns, but I don't get them.

Maybe it's because everybody is looking for them that they don't work.

 

[China Diapers]

What is a h&s when viewed as a whole?

What timeframes and markets do you trade?

 

[shadowninja]

"Wallstreet1928" often points out H&S patterns as does Oscar (livewithoscar.com). Have a look at how they incorporate them into their analyses.

 

[China Diapers]

A hammer

 

[songcon]

What is a h&s when viewed as a whole?

What timeframes and markets do you trade?

You use H&S to identify a reversal pattern, something that has been moving along
and about to change course. To trade on the pattern, you have to wait for the
confirmation of the new moves through the breaking of the neckline and the traded volume.

This is not as easy as the short-term pattern such as: Traiangle, Flags or pennants . . .
which is easier to identify and to trade.

I consider Edwards & MaGee's is the best technical analysis book, but he might not
be the best teacher for a person who asks some basic question like you.

Technical Analysis by Pring to be used along with Edwards' book, and Thomas
Bulkowski's Encyclopedia of Chart Patterns would be more suitable for you.

This is a few lines that Bulkowski describes and rates the H&S pattern.

http://thepatternsite.com/hst.html#HST1

PS: I am not related to Thomas Bulkowski in anyway.

Cheers,

 

[enragedcow]

once

perfect textbook head and shoulders on the eur/usd 1 min timeframe

profit of 20ish pips by the time i exited

most of the other head and shoulders i see are so far from descriptions in textbooks i don't trade them and others still are good looking but break the wrong way lol

 

[China Diapers]

You use H&S to identify a reversal pattern, something that has been moving along
and about to change course. To trade on the pattern, you have to wait for the
confirmation of the new moves through the breaking of the neckline and the traded volume.

This is not as easy as the short-term pattern such as: Traiangle, Flags or pennants . . .
which is easier to identify and to trade.

I consider Edwards & MaGee's is the best technical analysis book, but he might not
be the best teacher for a person who asks some basic question like you.

Technical Analysis by Pring to be used along with Edwards' book, and Thomas
Bulkowski's Encyclopedia of Chart Patterns would be more suitable for you.

This is a few lines that Bulkowski describes and rates the H&S pattern.

http://thepatternsite.com/hst.html#HST1

PS: I am not related to Thomas Bulkowski in anyway.

Cheers,

Thanks for the response buddy.

I found Edwards and MaGee's book pretty straight forward and I understand perfectly how a h&s works in theory and have seen some textbook examples in hindsight, my point is in my experience they do not have a high enough success rate to be of any use, I might has well enter trades on the flip of a coin.

I have read Pring too, in fact I have seen him speak in person. I have read too many trading books, couldn't stomach another one so probably give Bulkowski a miss.

There was another poster on this thread who unfortunately deleted his posts so the flow of this thread is messed up now.

 

[China Diapers]

once

perfect textbook head and shoulders on the eur/usd 1 min timeframe

profit of 20ish pips by the time i exited

Way to go.

 

[forker]

Head and shoulders... Do you find you have less dandruff as well?

 

[China Diapers]

Head and shoulders... Do you find you have less dandruff as well?

Yes, I've also noticed my hair is soft, manageable and shiny, and smelling gorgeous too.