Hello Bule
When the Right shoulder forms, we don't expect a major correction wave to 2820 levels. H&S formations are always related to the time frame sighted on.
A break of this current 4 hr multiple H&S neckline would take price 180 pips below the neckline . (i.e: 3080-180=2900 max).
We don't envision that happening, because of the formed weekly ledge (spoken of in earlier posts above). This ledge gives extremely strong weekly support as of 3040-3000. (possible levels on engineered stop hunting of the 3080 buy levels). But not a reliable forecast to hope for & trade.
Our bias is to continue holding the 3075 longs - right through the H&S movement as outlined below.
Quote:
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Originally Posted by Summerset
Longterm, we hold our longs @ 3075, and will only bailout on a pullback to the neckline, after it gets successfully penetrated downward with an outburst of momkentum (Green bars -shown below on chart).
There will be ample time then to close the longs @ b/e on a pullback to the neckline. Else we would miss the chance of riding the longs on a breakout upwards from the multiple right shoulder(s), if they get to act as an inverted double top as happened previously with the left multiple shoulders. (See Chart attached).
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If U have a hedging platform, & wish to play intraday, U could sell the Eurodollar "shoulder head levels" marked out on the chart attached. OR buy Swissdollar- only when Eurdollar reaches such "Shoulder head levels" to sell it when Eurodollar reaches the "necklines" for i-day profits.
We are also more focused on a break upwards from the left shoulder, as it forms. And envision this to occur, on a violation of the inverted H&S formation shown in Gold on the Chart below. Or on a symmetry of the previous inverted double top pattern shown in white.
If the gold neckline gets violated, that would take price to support on top of the green channel shown on the chart below (3240).
I am personally biased, that if we see more consolidation in the "Shoulder heads range" during the next 16 hrs, that a breakout ould ensue upwards above the green channel top. Positive divergence on the 4-hr CCi point to this. (IMHO).
Its better for the trader to conserve his focus & capital, by engaging longs (with the trend). The aggressive trader can therefore engage longs at the lower shoulder heads level <3140-50>, or breakout of the gold neckline @ 3194.
The conservative "normal" trader would naturally buy 3088-->3110, or go look for something more lucrative & less risky. - No need to sweat or take unneccessary risk- In trading there usually never is anything neccessary to chase or run after actually. If in planning a trade, U feel that U are forced in a situation to chase it. Then its best to check yr plan premise, for it could be wrong.
Profitable Trading