Krist, I use a lot of metaphors in describing the markets, because many times in making it look more picturesque, it makes them easier to understand.
First, I marked your chart up a bit, but I'll explain why.
First let's get to the H&S. The answer is, "No." An H&S, is rare but yields lots of pips on its formation. An H&S has uniformity. The better the uniformity, the better the results.
The 2 you pointed out looks maimed, to say the least. In addition, there was no discernible results from the formation. You want a healthy uniform H&S. If you were in a burning building on the 2nd floor, you might be a little concerned if someone 5'2" and 135 pounds with a hunchback and drooping shoulders came to rescue you. If, however, you had a robust looking young man with strong uniform shoulders, v-shape body, 6'4", 230 pounds of muscle, then you are going to feel real good that you are going to live to tell it.
The moral of the story?: Don't leap out of the building into a deformed H&S.
Now, let me get to the awful deed of marking up your chart. Simple code here: Blue=1, red=2, green=3.
I think one of the most overlooked, least talked about formations is the 1-2-3. I don't trade candles or the formations, as per se, but I have entered many trades on the 1-2-3, because they so obviously stand out, and they are presented on a daily basis, depended on how many markets you follow and how many TF's you are considering their formation on.
I did miss 2 of them to the far west.
In an uptrend, the 1 is a swing low (It could also be the dip.), the 2 is a swing high, the 3 is a swing low, higher than the 1. Set your entry for the 2 spot and the stop below the 3.
The exits will get a little tricky, as you'll need ulterior means to ascertain them. Nevertheless, good pips are yielded on 1-2-3's.
jpg image hosting
First, I marked your chart up a bit, but I'll explain why.
First let's get to the H&S. The answer is, "No." An H&S, is rare but yields lots of pips on its formation. An H&S has uniformity. The better the uniformity, the better the results.
The 2 you pointed out looks maimed, to say the least. In addition, there was no discernible results from the formation. You want a healthy uniform H&S. If you were in a burning building on the 2nd floor, you might be a little concerned if someone 5'2" and 135 pounds with a hunchback and drooping shoulders came to rescue you. If, however, you had a robust looking young man with strong uniform shoulders, v-shape body, 6'4", 230 pounds of muscle, then you are going to feel real good that you are going to live to tell it.
The moral of the story?: Don't leap out of the building into a deformed H&S.
Now, let me get to the awful deed of marking up your chart. Simple code here: Blue=1, red=2, green=3.
I think one of the most overlooked, least talked about formations is the 1-2-3. I don't trade candles or the formations, as per se, but I have entered many trades on the 1-2-3, because they so obviously stand out, and they are presented on a daily basis, depended on how many markets you follow and how many TF's you are considering their formation on.
I did miss 2 of them to the far west.
In an uptrend, the 1 is a swing low (It could also be the dip.), the 2 is a swing high, the 3 is a swing low, higher than the 1. Set your entry for the 2 spot and the stop below the 3.
The exits will get a little tricky, as you'll need ulterior means to ascertain them. Nevertheless, good pips are yielded on 1-2-3's.
jpg image hosting
Would these qualify as HnS?
If yes, first one failed while second one gave good result. However as per definition,HnS forms in UT. So one In UT failed, while one in DT( or sideways) succeded.
Please guide.
(Also, would the small rise after sharp fall in Jan 2008 be called a bearish flag?)
Thnx in advance.
If yes, first one failed while second one gave good result. However as per definition,HnS forms in UT. So one In UT failed, while one in DT( or sideways) succeded.
Please guide.
(Also, would the small rise after sharp fall in Jan 2008 be called a bearish flag?)
Thnx in advance.
