Head and shoulder patterns can occur on all times frames, and can be seen
visually. While subjective at times, the complete pattern provides
entries, stops and profit targets making it easy to implement a trading
strategy. The pattern is composed of a left shoulder, head, then
followed by a right shoulder. The most common entry point is a breakout
of the neckline, with a stop above (market top) or below (market bottom)
the right shoulder. The system is not perfect, but does provide a
method of trading the markets based on logical price movements.
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