Trading Patterns & Strategies that works to become full time trader

I've been successful in identifying the approach and strategies that works in long term trading. Trading requires test and skillset, which need to be tested in every type of market scenarios. Recent price structures does not allow or require to remain in trade for long term periods as volatility is at 10 year's high which means the average of 10 days can be seen in a single session or a day. VIX index jumps to $90 which was not seen in decades.

I often take strategies and risk reward as the first consideration as compare to market news or fundamentals that are driving the markets. If I see an opportunity which is no in line with my strategies, then I usually avoid trading for days or even weeks. Fundamentally can be supportive or recent trend structure or building of a trend but if profit targets are not seen or a good level is not seen, then you must wait for things to settle and need to watch a level when it is test. Tests usually offers good risk Reward opportunity or even at time it offer counter trend good reward opportunity .

Counter trend trades are very powerful as compare to trend trading because when we see a spike due to fundamental reason, then usually swings are large and require tests & when you see they usually reverse then bottom or top before the news are tested in between trend. I usually rely on counter trend trades and 90% of my trades are counter trend or you can say I trade on short side of the market and I'm prolifically a seller .

I'll cover lot more on topic with trading recommendations in the weeks and months to come. Please stay tuned and spend atleast 3-4 months on the blog and see what changes it can make to as a trader, which took me 8 years.

How to trade Head and shoulder pattern in trading

In this post, I will guide you on how to trade Head and should patter in Trading.

Head and shoulder pattern is the mostly and best trading method for forex and commodity and stock market trader. Reason being the very Good Risk reward opportunity.

Risk Reward in Head and shoulder pattern trader can be calculated with measure fibos from Swing low to swing high or even extension target if there is a measure move. By measure move I mean to say if there are equal swing high after breakout of strong support and resistance.

You first need to make some changes way you trade as Mostly all pattern at sometime frame show head and shoulder pattern but they have very high failure rates and very rare opportunity triggers the desired result. Reason by Left Shoulder kink.

Left should is the most important point to be considered when You trade head and shoulder pattern. Left should rejection and price retest those levels is critical after engulfed and make new highs. Specially, if new high is made after breaching strong level of resistance (Vice-e-versa for support).

Download my Supply and demand Strategy e-book on Crude Oil Futures here

In the example above, we have witness a strong breach resistance with purpose & while price get back to the area, it hold the area but there were no considerable rallies to count for possible buyers at those level. Price easily breach the area and test the support below and try to create a base around the previous swing low.

Also Read :- How I manage to pick top in Crude oil WTI 

Price rise and create a stop hunting zone market with blue horizontal line, After few sessions price try to test the rising trendline but stalled again at the resistance. So called move is know as stop hunting zones. There are possible sellers above the stop hunting zone & When Price usually breach such levels, then It use to create panic with a candlesticks pattern above the hunting zone, which was in this case as double marabozou bullish candles. All the hints of possible strong decline to test the next support zone & that is why I want to check this post and over and over again to get desired results when you try to trade head and should pattern in trading.

This is all you need to know when you trade Head and shoulder pattern, I would recommend to put stops just above the swing high of last retest zone and target atleast 4 to 5 times of reward . If there are new zone below or strong support, avoid trading such patterns and work on your risk reward. There are easily couple of very good setups in  a month on every pair visible in a month.

Stay tuned for more & happy Trading .