9. How to Trade the Head and Shoulders Pattern Part 1
Posted on 30. Jul, 2010 by admin in Uncategorized
www.informedtrades.com The 3rd lesson in a series on charting patterns which looks at the head and shoulders pattern and how traders use this in the stock market, forex market, and futures market.
emaxxx29
30. Jul, 2010
Good stuff man! your videos are soo good
rwh03001
30. Jul, 2010
My question is in regards to the reverse H+S pattern shown in your example graph. There looks to be a 2nd shoulder in between the Head and what you labeled as the 2nd shoulder. As I would be seeing what I could consider to be a 2nd shoulder before the one that you labeled ever came into existence, how can I differentiate between what I would likely recognize as the 2nd shoulder (as it is happening) versus what you eventually labeled as the 2nd shoulder?
enyawsllihkrap
30. Jul, 2010
Hi Dave
great videos, I see you using large time fram charts to forcast head and shoulders/double tops etc cand to apply these to smaller charts such as 15minutes ?
valeagrl1
30. Jul, 2010
Haha, I just noticed there’s a head & shoulders Part 2 that answers my question!! Thanks. . .
valeagrl1
30. Jul, 2010
Can you determine a potential likely profit target based on the height of the pattern (going in the opposite direction of course) like you described in the previous video about Tops and Bottoms?
mahhdi
30. Jul, 2010
Hi Dave,
Thanks again for this, one general question:
Do you have a good advice on graphs to use (which one do you use for the vids?) I use plus500 integrated graphs, but they dont show trends as good as they do on you videos
joeyindiana
30. Jul, 2010
Thank you for your insight. Do you use a service to scan for patterns or trends? How do you find stocks to trade?
InformedTrades
30. Jul, 2010
Yes they can be relevant on really any time frame.
ashiinin
30. Jul, 2010
Thanks Dave for the great series.
Are the double top/bottom, head & shoulder strategies relevant for 1-2 month time horizon also?
ordgstrn
30. Jul, 2010
As this is a reversal pattern it is an indication of a change in the trend of a market however markets can have several reversals in the short term without affecting the long term trend, a one minuit time frame may show a reversal n the arket but over the same period a 15 minuit time frame may show no change. if you are a day trader using mainly technical analysis you would be focusing on short term trades (tick by tick or one minuit)
mwe1967
30. Jul, 2010
Over what time frame are these patterns covering?
comtwah
30. Jul, 2010
No. . . . . . YOU have a great day.
luckyload3r
30. Jul, 2010
thanks, helps a curious 15 year old !
ongsoegiarto
30. Jul, 2010
Hi Dave, Can you pls tell what is your duration of time that you usually implicate when deciding to use Head & Shoulder Pattern and also Reversed Head & Shoulder Pattern?? Thank You So much. . .
As many other, i also would like to say thanks for your helps through these videos. . As 20 years old student that would like to trade forex your videos helps me to save sucstantial amount of money.
rbonilla18
30. Jul, 2010
read market wizard. you will feel better after finishing the book.
surfjersey23
30. Jul, 2010
Hi Dave. Your videos are appreciated. Few questions though. On the reverse head and shoulders pattern, the first shoulder did not seem very defined. Also the right shoulder seemed to appear after where I thought I saw a shoulder develop. Is there a quantative method to confirm like down 5% from its high or a certain slope for a certain period of time? Im really interested and appreciate your videos. They are simple easily teach the concepts.
anthonyj1985
30. Jul, 2010
I have just started trading at big bank’s prop desk. Your videos are the first real resource on intra-day trading I have found. Most trading books are absolute crap!
InformedTrades
30. Jul, 2010
Hi LenGarc, Glad to hear from you. Sorry to hear that you got off to a rough start but glad you like the videos. Best Regards, Dave
LenGarc
30. Jul, 2010
I just lost a lot of money because I did not know what I was doing. I really appreciate these videos and am determined to learn this stuff so that I can start winning for a change. Thanks a million. I am so greatful that you are helping me with my understanding of this.
InformedTrades
30. Jul, 2010
Thanks for the comment and for watching I am glad you like it. I simply look at the charts to find the patterns which is easy for me since I only follow a few markets. Best Regards, Dave
sangitapathak
30. Jul, 2010
Thanks for great video and keep up the good work!
Just one question, I was wondering what tool/scans do you use to find this pattern?
Thanks!
Sameer
InformedTrades
30. Jul, 2010
Hi Markduff, Thanks for the kind words I am glad you like the videos and thanks for watching.
Best Regards, Dave
markduff
30. Jul, 2010
Brilliant videos you should be getting paid for this but im sure there are tons of people who are really happy you are giving us this information. Its much appreiciated.
chasleo
30. Jul, 2010
I should add that some of these patterns are difficult to discern as they are getting plotted – on a daily chart you can’t always tell if a ‘head and shoulders’ pattern when it reaches past the head will end up going double top. The inverse is also true.
I’d have to say that looking for these patterns are probably more useful when looking at a longer time frame although it can be applied cautiously to an intraday chart.
InformedTrades
30. Jul, 2010
thanks again for the comments! Best Regards, Dave