9. How to Trade the Head and Shoulders Pattern Part 1

[DayTradersWin]

Ran accross your video - friend and subscribe for wealth building videos - day trader, day trading, day trade

[LitheInvestments]

We are in a LONG time frame head and shoulders in the DJIA right now, this could be a down market breaking below 10k if technicals are correct

[ZerroRozario]

The greatest pyramid in the world was constructed not by Egyptians, it was made by economists.

The strongest and hugest construction.

The market is a new religion.

[emaxxx29]

Good stuff man! your videos are soo good

[freeSCALPINGindicato]

@emaxxx29 i got better stuff - free SCALPING indicator which is never loss believe or not

[rwh03001]

My question is in regards to the reverse H+S pattern shown in your example graph. There looks to be a 2nd shoulder in between the Head and what you labeled as the 2nd shoulder. As I would be seeing what I could consider to be a 2nd shoulder before the one that you labeled ever came into existence, how can I differentiate between what I would likely recognize as the 2nd shoulder (as it is happening) versus what you eventually labeled as the 2nd shoulder?

[Shredlectric]

@rwh03001 I was thinking the exact same. For T.A. it's up to interpretation.

[enyawsllihkrap]

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 ?

[valeagrl1]

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?

[valeagrl1]

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

[mahhdi]

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

[joeyindiana]

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

[ashiinin]

Thanks Dave for the great series.

Are the double top/bottom, head & shoulder strategies relevant for 1-2 month time horizon also?

[InformedTrades]

Yes they can be relevant on really any time frame.

[mwe1967]

Over what time frame are these patterns covering?

[ordgstrn]

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)

[comtwah]

No......YOU have a great day.

[luckyload3r]

thanks, helps a curious 15 year old !

[ongsoegiarto]

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.

[anthonyj1985]

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!

[LenGarc]

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.

[InformedTrades]

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

[rbonilla18]

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

[sangitapathak]

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

[InformedTrades]

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

[markduff]

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.

[InformedTrades]

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

Best Regards, Dave

[preetamgawade]

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 !! :-)

[InformedTrades]

thanks again for the comments! Best Regards, Dave

[PatrickTrading]

Thanks for the great tutorials.

[InformedTrades]

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

[ramanankrish]

What is the typical timeline that is to be used for this strategy..interms of the Head n shoulders..Isn't one day or even a 3 month charts too short and might lead to an eventual reversal? Please advice.

[InformedTrades]

Hi Ramanankrish, Thanks for the comment. What the head and shoulders pattern is telling you is that a trend is running out of steam. So this could be a relevant pattern on any time frame chart. With this being said as with any technical analysis tool the longer the time frame the more weight is normally placed on the pattern. Also remember that no pattern is right 100% of the time even on the longer term charts. Best Regards, Dave

[chasleo]

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.

[InformedTrades]

thanks again for the comment. Best, Davae

[cameo747]

great!

simple to understand

[InformedTrades]

glad you liked it and thanks again for the comment! Best Regards, David