US30 - 2H - Head and shoulders retest

8 avr. 2016

We are currently apporaching the trendline of the big ABC of the weekly timeframe that corrected the big upmove through the early 10's.
Since we already had a mayor upmove towards this area (extended 5 wave structure) i dont expect the market to break through that level with great momentum just yet. we already started a downsequence making a lower high and confirming it by a lower low (completing the head and shoulders) that its a good idea to look for shorts.
you can ofc wait for something like a hammer or a engulfing formating here to give you a sign of rejection or you look for doubletops or trendline breaks on a lower timeframe.

stops should at least go above the right shoulder to give the market a bit of room.
if we fall of that area, note that we have a bigger head and shoulders below.

8 avr. 2016

Note

this could be a guideline for a lower timeframe trade. in this case i guess it would be ok to place the stops above the highs of the recent upmove over possibly even above the consolidation