I placed my stop above the shoulder at 4140, just been stopped out.
Yes i did think it was th start of new down trend.
My moving avergaes also gave a sell signal & 14 CCI also was heading south through 0, on my 5min chart!!
Lost 8 points could of made 20-40!!!
I prefer the head & shoulders to form over a longer period of time and to have a higher target price. They are supposed to be quite reliable and the stop is small enough if there is a chance of a reversal.
I have seen a few stats. about head and shoulders but it would be interesting to know how accurate they are on a 1min chart. They seem to meet their target from the top of the head reasonably often but how often do they signal the end of a trend?
Does the inverse h&s work better? I will have a look at some charts when I get some time.