H&S formations

Thanks for that RC, I've made a note of it and will try to incorporate it into what I'm doing. Appreciate that you took the time to share it.

Shotry,
Numerous I H&S patterns (& H&S patterns) appear every day and they are fairly easy to spot. Most of the miners have been in a prolonged downtrend and we will soon see I H&S patterns appear on many of the mining stocks. Problem is not normally whether the pattern exists but whether it is strong & reliable for a profitable trade. For that you need to be familiar with recognizing TRENDS and in particular STRENGTH of a TREND to successfully trade these patterns. They can appear at the bottom of the downtrend, middle of an uptrend or at the (potential)top of an uptrend.

If you are a beginner then you should stick to those which appear at the bottom of a downtrend.

A few points that might help you in future to make better entries at I H&S patterns (opposite for H&S ) & hopefully profitable trades!
1.Look for I H&S which are forming below 200DMA (for daily and weekly time frame).
2.Duration of the downtrend before which it enters the I H&S pattern. On the Lloyds chart which Jackozy has posted today you could see that the down move started in September 2010 and lead to the beginning of I H&S in August 2011 (roughly 12 months). The pattern itself took 12 months to develop. Break of neck line occurred in September 2012 (12 months). It was a classic and a reliable pattern. Look for an inbound trend that is longer than the duration of the pattern (John Lansing’s Trending 123). A shallow inbound trend may indicate a period of consolidation & hence can create a lot of whipsaws and choppy moves (means more chances of getting stopped out & hence less reliable) before the price move indicated by the pattern eventually begins.
3.Volume – highest on the left shoulder + lowest on the right with a burst in volume on break of the neck line.
4.Slope of the neck line – an upward slopping neckline is more bullish than a downward sloping one.
5.Try to trade this patterns in more liquid markets like FTSE100/forex rather than AIM stocks.

I'm assuming you mean Amur?

hi shotry
thanks for highlighting that chart
Ive gone long on it due to that chart.lol

I watch out for them and understand that they're one of the more reliable chart patterns (I have Bulkowski's pattern encyclopedia here). I sometimes trade them, sometimes they're profitable. I don't just follow the target regardless. I keep watching what the price and my indicators are doing and either stay in or leave the trade according to that.
I feel as as though I'm waffling and running all over the tune without ever striking a note? Is there something more specific you want RC?

Shotry,

What sort of experience do you have in trading H&S patterns?