[Head and shoulders top]
Yesterday I shared my actual operation, because there was not much fluctuation today, it did not fall below the support, and it did not rise sharply.
> We are still waiting and watching. Once the stop loss is set, there is no need to follow the rise and fall of prices.
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I was just checking the top trading volume rankings and found one that seemed to be making a head, so I was watching to see if the line break was established.
You can see Figure 1 $WLD , forming a *head and shoulders top*
The calculation of sufficient decline is from the high point of the head, shoulders and neck to the position of the neckline
After breaking the line, you can start to calculate the decline
A little trick is that if you see it falling, it will fall to an unreasonable price, such as very low, close to zero, or even a negative price.
You can turn on the logarithmic chart to calculate the drop rate, first calculate the first wave and then the second wave.
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In terms of my operation, I sell short only after it rebounds after falling below the line.
Just like what I said in the previous article, if I don’t catch up to the position where the line broke at the beginning, then I will wait for it to rebound before entering the market. This can reduce the loss of my stop loss.
Then my loss will be set when it falls below the upper high point on the front line. Taking this level as an example, I may be around 7.38.
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