US30 - 2H - Head and shoulders retest
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.
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.
Komen:
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
