a head and shoulders pattern if you look carefully is made up of a 2b (left shoulder and head) and a 123 (head and right shoulder). here is a chart of a selective 2b setup
abc is the 3 waves after a 5 wave sequence heres what you do with abc FORGET THEM! 123's after a trend or 2b's after a trend is what were are looking for heres a chart see if you understand this one be free to comment remember trade with the trend so if trend changes via a 2b or 123 break pullback trend has changed so follow the trend
Great chart and everything becomes more clear now!
Am I correct when i say that there is another 2 on the chart just next to the 13:10 24 december mark? It is broken and retested afterwards for a profitable sell.
I am still learning,
however I can say this is not only " presence of divergence" but also " presence of mind"
to take the right Decision with limited risk based on things we have learned by these experts working hard to teach us newbies with patience.
Ok, here is my trade for today. Nice little break out and retest of news this morning. See attached.
Ignored
Hi Golfer,
Nice call and congrats on the pips! But if I understand the rules of the system correctly this trade was not correct. The two closes above the high before the retrace are lacking.
I draw a trade on your chart which would have fitted this rule as an example!
if you look where you drew line at 89 we only needed to go to 80 for target so both my line and yours were plenty of room to hit tatget which is what its all about. Thats probably why price bounced near your line to come down
You are correct that my trade does not meet the rules. My rules for me are slightly different than that of fxpivots. Both of us trying to achieve the same thing just different ways to go about it. I just look for consolidation and watch for a breakout and retracement.
The 5 minute TF S&R trading system
