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

http://www.informedtrades.com/
The 3rd lesson in a series on charting patterns which looks at the head and shoulders pattern and how traders use this in the stock market, forex market, and futures market.

Category:

Howto & Style

Tags:

• how
• to
• daytrade
• stock
• market
• investing
• finance
• forex
• technical
• analysis
• informedtrades

[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.

[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

[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

[Shredlectric]

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

[DayTradersWin]

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

[freeSCALPINGindicato]

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

[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

[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?

[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]

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