Candlestick Patterns; Head & Shoulders, double-tops and bottoms; Trading Range determines the trading day ahead

Did you know that some of the most common chart patterns are actually VERY risky for day traders?

For example, one of the most popular patterns is the Head & Shoulders pattern, this is one of the most difficult patterns to make profit with….

Did you know that we can determine the type of trading day ahead by looking at the trading range from yesterday?

This is one of the most important lessons you are going to learn, so be sure to watch today’s video.

– Head & Shoulders Patterns

o Trade the break of the neckline

o However, the break of the neckline is also a double-bottom, and we do NOT trade around double-bottoms.

o Be very careful at the break, expect price to be very whippy, and don’t be surprised if it bounces back to the upside.

o Wait for the break below, then look for an entry short using a faster timeframe, looking for a clean entry.

– Different Trading Ranges from one day to the next

     o Different ranges mean different market sentiment

     o Wider range = strong price action

      Looking for 2-step patterns to sell the highs and buy the lows

     o Tighter trading range = weaker price action

      Wait for the breakout and then look to trade with the direction of the short term trend.