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AUD:CAD - Daily. Head & Shoulders Update

CMC Markets

I posted details of the potential Head and Shoulders top in this chart on 25 November. Price closed below the neck line on Friday triggering an entry.

Some profit targets and an initial stop level are noted on the chart below for readers who are interested in a head and shoulders strategy. The first target is based on the measuring rule and deducts the height of the head and shoulders formation from the point at which price broke through the neck line. The 2nd target is a Fibonacci cluster represented by a 50% retracement of the last major swing up and 161.8% of the H&S formation height measured from the break point

A dynamic stop loss strategy in which the stop is moved down behind any new failure points that emerge also often improves the result of a trading strategy.  If we get any of these, I'll post details

Cheers

Ric


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