moonchild
VIP Contributor
A head and shoulder pattern is one of the most common pattern in forex trading it can be seen all over the chart, wherever market creates a structure there will be a part where a trend will be exhausted and that's exactly the point where the market usually create this pattern.
In an uptrend, it'll make a higher high and a higher low and then make a higher high and then a small high that didn't violate the previous high, that's a head and shoulder formation, and the same thing occurs in downtrend markets but this around it occurs inversely.
The advantage of this pattern is it doesn't have a draw down at all because wrket has already shown weakeness by not being able to take out previous highs or lows.
In an uptrend, it'll make a higher high and a higher low and then make a higher high and then a small high that didn't violate the previous high, that's a head and shoulder formation, and the same thing occurs in downtrend markets but this around it occurs inversely.
The advantage of this pattern is it doesn't have a draw down at all because wrket has already shown weakeness by not being able to take out previous highs or lows.
