Continuing with the theme of trading patterns David explains one of the most popular setups in the trading world – the “Head and Shoulders” formation. Using real examples he shows us how to interpret it when it happens, as well as the potential pitfalls of relying too much on similar formations that are not confirmed with indicators or the larger trend.
Among the highlights that David is looking forward to this week are the CPI and Average Earnings data from the UK and the GDP number for Japan, respectively the GBP/USD and USD/JPY.
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Hi David, enjoying Trading212 app and videos. I’m 6 weeks in learning to trade. Steep learning curve. Can you advise when you find yourself with a bad open position, what is the best recovey strategy. For example I opened a SELL position on BRENT OIL at 50.80 (15/03). The market continue to climb and my Stop Loss kicked in at 51.38. Should I have opened a number of BUY positions as the market climbed and then used them to cancel off the SELL Position? Or is that a risky strategy getting caught with positions in both directions? Thanks.
Hi there. Trading advice cannot be provided, as per regulations.
I don’t know how to play your game
Hello. You can follow the tutorial which launches upon opening a new Practice Account. Take a look at the Learning Centre at http://www.trading212.com/en/Get-to-know-FOREX-trading. Subscribe to this channel and watch the other videos. If you have any particular questions, feel free to get in touch with the customer support team. Contacts at http://www.trading212.com/en/Contact. Wishing you successful trading with Trading 212.
Hi there. Trading 212 is a self-trading app. Every trader is solely responsible for their trading decisions. The results depend on the traders’ strategy and discipline, as well as on the market.
“i am not a big fan of all these patterns….. and you miss out on major market strengths” – ‘major market strengths’ – can you elaborate?
Hi – I think I fluffed my words there and should have said “major market trends”. I think the risk can be if you are squinting at charts looking for patterns, you can end up ignoring the bigger picture of e.g. a strongly trending market.
It is so satisfying to watch these videos few months later and see that 95% of your suggestions in which direction the market is going to move are actually true.
I’m a big fan of your channel. Keep it! I would like to see more graphic analysis videos.
Hi David, I really appreciate your videos, great content.
I’m noticing a pattern in your videos themselves though. You seem to be sceptical about a lot of these patterns and I was just wondering which patterns you personally use? I think it would be really interesting to hear what your go-to tools, patterns, and indicators are. Not financial advice of course. Cheers
Well spotted. For me it is all about support/resistance and trend. We are all different but I think you can spend too much time trying to explain every tiny move in the market.
Thank sir….for your explanation…it was great
Best video for trader
the data comes out good and the pair go the other way
Very interesting to see u also used line graph to see the head and shoulder pattern wich is really usefull to spot it! Never thought line graph would be usefull. Thank you !
thank you so much
Please explain PRZ (potential Reversal Zone)
Good learning vedios
are the trends and indicators specific to currencies or anything in partocular or they can be used for all of them in general
Would suppresistance and fib catch that trade if you don’t notice that head and shoulder pattern?