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.
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.