inverted head and shoulders, anyone?

take a look at the daily usdcad, looks like an inverted head and shoulders to me..

<img src=''/>

not sure if to take the trade though, as it's against the trend. but sure looks good to me.

any ideas anyone?

just a follow up - i've noticed a very interesting symmetry, and i'm eager to know how it plays out!

take a look and let me know what you think:

<a href= target='_blank'><img src= /></a>

<a href= target='_blank'><img src= /></a>Hi Biz,
I'd say that was a good probability trade for a long, but not sure about the inverted H&S. Its a bit messy for me, the right shoulder is too low. I attached a chart for your consideration. If I was going to take that I'd take the first profit at either the underside of that descending trend line or at the high traffic area at the horizontal line.

A good set up though. I'd also be weary of what looks like a shooting star from yesterday. Price rejected those highs (note the resistance at the top of that wick, put a horizontal line there and its uncanny how s&r works - it works!!) and if yesterday's candle was at the top of a sustained rally, I'd be shorting. Is a shooting star in the wrong place still a shooting star?? Anyway, that long wick would bother me slightly and stop would be tight on this one.

Good luck if you take that. I'll be watching what happens from the side.

Darren

hi darren, thanks for the comment.

i haven't made the trade yet, just something that i'm exploring. i don't really like formations like shooting stars, dojis or any of the several candle patterns - i just find it too random.

the right shoulder is too low if you look at it horizontally, but as i've shown in the image, the head and shoulders formation is occurring inside the downtrend channel, so if you were to look at it after rotating the channel to be horizontal, you would see it's a perfect head and shoulders formation.

just testing it though, i really hate making trades against the trend so i'm waiting it out to see what happens.

Hi Biz,

Maybe we should've taken that long.

gbl_am posted:
    Hi Biz,

Maybe we should've taken that long.

yeah, maybe 😄

i'm still keeping an eye on it, looking to see if it completes as expected.

need to spot some more of these occurrences, to see what's their probability.

if you find something similar, feel free to post it here.

Yep, definitely should've taken that long

biz0101 posted:
    

gbl_am posted:
    Hi Biz,

Maybe we should've taken that long.

yeah, maybe 😄

i'm still keeping an eye on it, looking to see if it completes as expected.

need to spot some more of these occurrences, to see what's their probability.

if you find something similar, feel free to post it here.

the move completed, and although it wasn't perfect, it was still possible to get about 180 pips from this move.