Head and Shoulders

It is VERY rare to see an almost perfect Head and Shoulders Chart pattern, but I saw one today on Euro USD. Here it is shown on a 4 hour chart.

Click the chart to enlarge it:

So this is a common technical analysis chart pattern showing the head in the middle and the two shoulders on either side. Ideally as in this case the top of the right should needs to be slightly lower than the top of the left shoulder.

I have put a line where the head and shoulders “neck line” is.

Notice that the break of the neckline is the trigger to go short. I have not taken this trade as I am now too late to take it at the trigger point, but it is interesting to see a technical signal so clearly stated.

Happy Trading

Oli Hille

Author

“Creating the Perfect Trade”

www.TradingBook.net