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9. HOW TO TRADE THE HEAD AND SHOULDERS PATTERN PART 1


www.informedtrades.com The 3rd warning in a series on charting patterns which looks at the nous and shoulders ornament and how traders use this in the stock market, forex market, and futures market. … how to daytrade stock mart direction finance forex technical psychotherapy informedtrades

This entry was posted on Thursday, December 31st, 2009 at 11:42 pm and is filed under Investing. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

25 Responses to “9. HOW TO TRADE THE HEAD AND SHOULDERS PATTERN PART 1”

  1. 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 ?

  2. Haha, I just noticed there’s a head & shoulders Part 2 that answers my question!! Thanks…

  3. 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?

  4. 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

  5. Thank you for your insight. Do you use a service to scan for patterns or trends? How do you find stocks to trade?

  6. InformedTrades on January 1st, 2010 at 2:04 am

    Yes they can be relevant on really any time frame.

  7. Thanks Dave for the great series.
    Are the double top/bottom, head & shoulder strategies relevant for 1-2 month time horizon also?

  8. 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)

  9. Over what time frame are these patterns covering?

  10. No……YOU have a great day.

  11. thanks, helps a curious 15 year old !

  12. 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.

  13. read market wizard. you will feel better after finishing the book.

  14. 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.

  15. 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!

  16. InformedTrades on January 1st, 2010 at 7:09 am

    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

  17. 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.

  18. InformedTrades on January 1st, 2010 at 8:14 am

    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

  19. 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

  20. InformedTrades on January 1st, 2010 at 9:18 am

    Hi Markduff, Thanks for the kind words I am glad you like the videos and thanks for watching.

    Best Regards, Dave

  21. 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.

  22. 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.

  23. thanks again for the comments! Best Regards, Dave

  24. I am walking through almost all classes …and I m very impressed with your efforts … It’s easy to understand and real quality education … Keep it up buddy !!

    I appreciate your help !! :-)

  25. Thanks for the comment patrick am glad you like them. Best Regards, Dave