H&S Trade Diary: 1-4
The slaughter continues as stop gets triggered on USDJPY: -2.04% / 40 Pips
Another relatively clean pattern with a flat neckline but the losses just keep coming:
Break came at the close of the hour so there was no need to drill down – I waited 40 minutes or so and shorted closer to the neckline at 108.10. Pair reversed back above neckline almost instantaneously, our 40 pip stop loss held out for a while, but was hit overnight. Pair then proceeded to decline towards our take profit target, gapping into it the following week.
Points Of Interest:
Once again, nothing really wrong with the pattern or trade execution, quite simply a false/bad signal. Sure are getting a lot of those. Though Head and Shoulders patterns are the most reliable chart pattern (Bulkowski), beginning to doubt effectiveness on lower time frames.
OG H&S: 1
5 trades down and the score’s 1-4 … think we’ll be winding this experiment up pretty soon.
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