[Tutorial] How to trade the Head & Shoulders pattern

"we actually had a pretty good example of a head and shoulders pattern on the Aussie dollar"

"this is actually what we took advantage of only aussie-dollar"

"all right guys so here on the dollar yen we actually have a really good example of a Head and Shoulders pattern"

"as you can see the dollar Swiss here on the 4-hour chart has been in a downtrend we're pushing down pushing back up and then we create our left shoulder right here the beginning stages of our neckline the head of the pattern the rest of the neckline the right shoulder and a push up but if we look left and consider that our targets may have been at previous structure you can see that this market never did test that previous structure before falling down and hitting what would have been the stop-loss on this trade"

"all right guys so here we are on that Aussie dollar trade and what I was looking for out of this trade is for the market to come down create this head of the pattern push back up and test our left shoulder once we test that left shoulder here then I was waiting to see if the market could provide some buying pressure from that left shoulder and that's when we decided to enter this trade after seeing what we consider buying pressure and the trade pushed up to hit our first targets quite easily"

"first targets were at this previous level of resistance right back here so now that this is the case and we have hit those first targets I've put a stop loss right above breakeven and we're waiting to see if this market can push higher into our next resistance level which will be in this area here"

"on the 4-hour chart you can see that we just broken above and closed above our previous resistance now since then we've just consolidated but that gives me an indication that this may be a point where the market wants to head higher"