Head and Shoulders Pattern: Projection vs. Trade Return

Summary

Hollow Point Trading explains why a chart pattern’s projected height is not the return a trader will earn. A hypothetical head and shoulders setup uses a $100 neckline and $110 head to show a $10 pattern height and a rough projected price of $90—an analytical reference, not a promised outcome.

https://youtu.be/cQGMXer8hnA

Pattern height is not your trade return #ChartPatterns #MeasuredMov...

Head and Shoulders Pattern: Projection vs. Trade Return
A pattern projection is not the return on your trade. Consider a labeled hypothetical head and shoulders example with a horizontal neckline at one hundred and a head at one hundred ten. The height is ten dollars. Subtract ten from the neckline for a rough projected price of ninety. That is a geometry reference, not a promised outcome. Now suppos...

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