With this formation, we would enter a long position at the retest of the neckline after it has been broken.
Our Stop Loss is going to be below the right shoulder at calculate percentage or 1.8 times ATR.
Our target is calculated by measuring the distance of the lower close of the head to the neckline.
80% of that distance between the head and the neckline is approximately the distance that the we will target after it breaks the neckline.
Remember always to wait for confirmations candles around the key levels.
Our Stop Loss is going to be below the right shoulder at calculate percentage or 1.8 times ATR.
Our target is calculated by measuring the distance of the lower close of the head to the neckline.
80% of that distance between the head and the neckline is approximately the distance that the we will target after it breaks the neckline.
Remember always to wait for confirmations candles around the key levels.