| Trade the Head and Shoulders Pattern |
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| Monday, 02 November 2009 18:21 |
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The Head and Shoulders pattern consists of four distinct parts: The left shoulder, the head, the right shoulder, and the neckline. Each of these four must be present for the formation to exist. Furthermore, the volume pattern must also meet strict requirements. Volume must show a peak on the left shoulder, a lower peak at the head, and then an even lower level at the right shoulder. One simple technique to determine whether the pattern fits is to draw a downtrend line on the volume chart. If the price pattern and volume line match, then you have identified a head and shoulders formation. Have a look at this video made by InformedTrades.com, where David explains extensively this pattern. |
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EUR/USD, JPY and GBP
26 November 2009 12:29
USD/JPY dropped from levels above 87.00 to 86.25 during Asian session, and the pair picked up to 87.00 previous year low although it has failed to break above here, and has eased to 86.70.EUR/USD rally from 1.4885 low on Wednesday reached 1.5145 on early Asian session, and the pair pulled down to 1.5050 low during European session to bounce up and reach levels right below 1.567.GBP/USD decline from 1.6730 has extended during European session, with the Pound dropping about 225 pips during the...
26 November 2009 12:29
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