The head and shoulders pattern is by far my favorite way to trade reversals in the Forex market. They don’t come around often but when they do the profits can be considerable. It isn’t abnormal to see moves of 500 pips or greater from these patterns. We’ll take a look at one that formed on the GBPJPY that resulted in a very profitable 1,800 pips. But what actually qualifies as a head and shoulders? Where should it form on a chart and what attributes does it need to have? Then there are the questions about entries, exits and of course the often-confusing measured objective. All of these unknowns can lead to an endless ... (full story)