week5 EURSGD head and shoulders fully formed, awaiting downmove


this chart shows how a large head and shoulders is already fully formed. This was completed with resistance confluence zone appearing. What is left now is the breakage of the bearflag to start an avalanche of downmove.

week5 EURSGD D1  big bear flag hns 300116

I also wish to highlight on observation and effectiveness of line chart pivot. Price seems to follow line chart well on D1. What needs to be done is to ignore the candlesticks version which shows the daily fluctuations. As such putting stop loss is a fallacy that may not help much in trading, as there tends to be regular episodes of spikeouts that serves to kill off traders with tight stops. Imo, these traders have believed that having a tight stops equates to having goo risk management. Where in actuality, good risk management is about having a good level of technical charting proficiency together with smaller and bearable position size.


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