"It's quite tempting to bend your rules to make your current trades work, ... Two of the cardinal sins of trading - giving losses too much rope and taking profits prematurely - are both attempts to make current positions more likely to succeed... - William Eckhardt, as quoted in The New Market Wizards, by Jack Schwager"
Head and Shoulders patterns are reversal formations that usually form at the market tops. Head and Shoulders patterns are very reliable, but failures do occur. When Head and
Shoulders patterns fail, they reverse the pattern and trade in an explosive manner in opposite direction. M During the left shoulder and the beginning of the Head formations, the volume will be heavy. While forming, volume dissipates on the right shoulder, and the volume increases during the breakdowns.
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THERE IS EQUAL OR GREATER POTENTIAL FOR LOSS WHILE USING THIS STRATEGY AND TRADE SETUPS.
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