S&P500 Head and Shoulders
- Thread starter louisjxn
- Start date
I know 2100 is major overhead resistance, but I'm thinking that after a pullback, there could possibly be a rally back to 2110--and maybe ATH's. Everyone is bearish now with all of the earnings that came out today, but the Fed meeting next week might be enough to run things up. I just keep thinking that the top *might* end up being more than most expect.
Personally I LOVE taking the other side of head-andshoulders set ups. I usually place stop order to get LONG and create a new position in these situations. I know most people use stop order to close out a position that is losing, but I do the opposite.
Once the index has breached a point where it should not go (the right hand shoulder) I have a stop order to get long there. Everyone is expecting the market to decline, so going through that number creates a massive short squeeze to the upside that is like a crash in reverse.
Once the index has breached a point where it should not go (the right hand shoulder) I have a stop order to get long there. Everyone is expecting the market to decline, so going through that number creates a massive short squeeze to the upside that is like a crash in reverse.
Unless Head gets higher than that, I would not consider it H&S, but possible Triple Top.
You are talking about a fake H&S.
As every fake pattern, it is usually a continuation pattern if pattern was a reversal and a reversal if pattern was a continuation one.
So yes, it is a good tactic to take the opposite side.
CM
the most unreliable short pattern is a h&s, 50% probability of being a head fake