CADJPY Head and shoulders

10. Aug. 2021

here is the CADJPY chart and as you can see we have a head and shoulders pattern forming on the daily and 4h timeframe after the third contact with the daily downtrend. How do we trade this? well what you can do is wait for sell pressure to come in now and enter at price action confirmation or you can trade the break of the neckline, what we are going to be doing is placing a sell stop below the neck line so when price makes its move we don't miss it as we trade a lot of markets. limit orders are a great tool to use if you are busy or got a full time job and should be used in your trading as not every time you will get an entry off an area of sensitivity.