Picture-perfect head and shoulders pattern

Leave a comment

April 29, 2008 by yogi2raj

Picture-perfect head and shoulders pattern

Forexmentor.com Forex Trading Price Action

We at http://www.forexmentor.com sincerely hope that you had a great Labor Day weekend unless, of course, you live in a country where it is celebrated at a different time of the year – like Australia, China, New Zealand, etc.!

Courtesy Christoph Lahrs, there is a picture-perfect head and shoulders pattern forming on the USD/CHF daily chart. Further, if you look closely, you will observe positive divergence on MACD histogram to price. And, if you look even more closely, price is above the 200 EMA on the 4 hour, 1 hour, 15 minute and 5 minute charts – at least as at 8:30 pm ET Monday, September 3/07.

The head of the H&S pattern is at the 200 EMA, but price is below the 200 EMA on the weekly chart – so, there is the possibility that price will advance from here. But, let’s not forget that the overall trend is down. Any trades to the long side from here are counter the big trend, and should be taken with extreme caution.

See latest sample AM Review at: http://www.forexmentor.com/sampler/

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Archives

%d bloggers like this: