week45 NZDJPY D1 shorting oppoturnity from a head and shoulder pattern

How can #trappedtraders signal be used in conjunction with classical chart patterns for better trading synergy?


Price has reached a trendline resistance confluence, with the head and shoulders validating the resistance confluence of the trendline. The head and shoulder is also a manifestation of the dow theory at work when the zigzag up is violated and hence suggests a halt to the uptrend for several weeks. With the print of a shooting star on yesterday’s close, it thus suggest this head and shoulder pattern might be going to cause another downmove.

week45 nzdjpy D1 trappedtraders 111015


Going into h4, the shape of the head and shoulders is apparent. What is even better for a chartist will be a small blag, print by multi days worth of price movement. This represents the neckline being tested, and this bear flag is validated by the daily shooting star ( #trappedtrader) signal. An immediate short will be good if we wish to capture some pips within the next few days.

week45 NZDJPY h4 head and shoulders necklien retest 101115


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s