The amount of methods used in forex trading is humongous and the trader should use also the popular ones since it can save his or her time, energy and capital. Although these methods are commonly known, anyone can develop them and create a full trading strategy. Availability of advanced tools on the trading platforms makes this task even easier. With such popular and plain methods using frequently appearing patterns, sophisticated schemes can be created. Some practice lets the trader find and recognize frequent patterns. Although tools like charts or candlesticks can give you tips on when to open and close positions, there are simpler ways.
The H&S chart pattern occurs very often in forex, mt4 lets you spot it. This is a name for the head and shoulders pattern. The Head and shoulders might be a topping formation following an uptrend or a bottoming formation following a downtrend. A topping pattern starts with a high price. Then, there is a retracement, and then the exchange rate goes higher, another retracement followed by a low. On the contrary, the bottoming pattern begins with a low, and then there must be a retracement after which a lower low occurs. Then there is another retracement and a higher low. In order for the pattern to be completed, the trendline connecting two extremums is broken. It can be easily observed with the Metatrader chart tools and implemented to online forex trading. This channel can be found using various programs, but make sure you use the best forex trading platform so it gives you as much option as possible. The H&S pattern can be turned into an expert advisor, mt4 ea tools let you either to download and install a prepared robot or create your own. You can trade this pattern because it gives you three elements: entry and stop level and a profit target.