|| Forex Training - Head and Shoulders ||

Head and Shoulders is a pattern that forms in a chart consisting of 3 upward bulges, the highest being the one in the middle, as can be seen below :

This is yesterday's 1hr EU chart showing Head n Shoulders forming

Head and shoulders is an indicator showing that a reversal will occur once the HnS pattern is complete. Here is what happened yesterday after the HnS pattern came true :

Reversal of an Uptrend to a Downtrend

You can predict till where approximately it will reverse by taking the distance in pips between the highest head point and the neckline, and extending the same distance downwards :


As you can see it is still on the process of falling, but to be safe just make your TP as at 70% of the distance. (the lesser the safer) This is how we won yesterday. Below is an example of a Reverse Head and Shoulders pattern, which is the same concept but opposite visually and in trend change. (down to up trend)

Not easy to spot this one !