Gold Head and Shoulder Pattern

Can we possible see a bearish move on Gold? Looking at this 1h chart we can see a Head and Shoulder pattern in the making. Now remember a pattern is not a pattern until confirmed. In this case we will wait for a break of the neck line, and we can see that our downside target (head neckline projection) falls at a support area. Form experience we've learned that if a reversal pattern fails to play out, we can expect a trust move in the direction of the prevailing trend. For this reason we always consider what the price can possible do, and then look at the opportunity/move with the highest probability, calculates our trade and if the Reward Risk Ratio falls with in our money management plan we execute the trade with confidence. Trusting the trading concept.

This is for educational purposes only.

Happy trading

Kommentera:

Breakdown with confirmation did not happened and the price bounced from the neckline support to move higher. Always consider what the price can possibly do.