EURCAD HEAD AND SHOULDER IN THE MAKING

10 Nis 2019EURCAD has carved out what most traders would termed as head and shoulder. By text book definition, head and shoulder is a reversal pattern and the objective of a head and shoulder is the distance of the head to the neck area.. Therefore EURCAD head and shoulder in the making provide as with a 741 pip movement from the head to the neck area... Please note that the head and shoulder pattern is valid only when the neck area is violated..
As of writing, price is currently hovering around the right shoulder level...

The bearish pin bar that appeared suggest to us that the bulls might be loosing the battle against the bears to confirm the head and shoulder formation. This triggered our interest and we therefore took a short position at 1.50195 targeting the neck area around 1.49196 that is almost a 100 pip movement in the making.

We will be watching the neck area with keen interest and when the neck area is breached we will add more position to ride the 741 pip movement to 1.4159... which is the objective of the head and shoulder..


Our risk will be the resistant area around 1.505..

Lets see how the trade unfolds..

Cheers!!!!!