Quick pattern question

oshunt

Member
86 2
Hi guys, just wondering does this qualify as a head and shoulders pattern on the H1 on the DAX if 7562 level is broken?
 

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arvo

Newbie
4 0
Hi guys, just wondering does this qualify as a head and shoulders pattern on the H1 on the DAX if 7562 level is broken?

Hi there, I'd say it doesn't to me. I don't see a trend that led to it in the first place - it looks like a good broad range between horizontal support and resistance. Either sell high / buy low or look for a good squeeze to trade a breakout in either direction, imho (and it looks like one was forming in the shape of a triangle).
Arvo
 
M

member275544

0 0
Hi guys, just wondering does this qualify as a head and shoulders pattern on the H1 on the DAX if 7562 level is broken?

with any of the classical patterns, volume should support these. Analyse the volume also would be my advice and no this doesnt particularly look strong. Most chart patterns are only good in hindsight

here's an example
looks like a great example of a H&S?
 

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M

member275544

0 0
with any of the classical patterns, volume should support these. Analyse the volume also would be my advice and no this doesnt particularly look strong. Most chart patterns are only good in hindsight

here's an example
looks like a great example of a H&S?

this is against the trend and one thing I have found is that anything against the trend is a bad idea..here's what happened next
 

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oshunt

Member
86 2
with any of the classical patterns, volume should support these. Analyse the volume also would be my advice and no this doesnt particularly look strong. Most chart patterns are only good in hindsight

here's an example
looks like a great example of a H&S?

Thanks for the reply guys,i've had trouble with trying to fully grasp this pattern , i'll take trend and volume in consideration next time i see a chart showing signs.
 
M

member275544

0 0
this is against the trend and one thing I have found is that anything against the trend is a bad idea..here's what happened next

compare this now to a reversal pattern WITH the trend, ie the end of a retracement in an overall uptrend..much more successful
 

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FringFX

Active member
244 6
Hi guys, just wondering does this qualify as a head and shoulders pattern on the H1 on the DAX if 7562 level is broken?
You did not show the lefthand side of that chart, but sure it could qualify as a head and shoulders. The thing with patterns is that they are mostly subjective, so what qualifies as a certain pattern for you, may not for other traders.
 
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