Classic tools are simple yet powerful tools but if and only if you know when to use them, otherwise they can be very misleading.
A good example of such pitfalls is inverse head and shoulders at the end of wave A. Traders who rely on this pattern regardless of its position in terms of Elliott waves may expect a new major high and become ready to make a nice profit but they get shocked by the market very soon in the case that they used inverse H&S at the end of wave A.
A clear example of this pitfall happened at the end of wave A on TSLA . Details are shown on the chart.
In fact, Head and Shoulders and inverse Head and Shoulders are nothing but some patterns forming in some types of Elliott wave cycles. You have to know when to use them. Inverse head and shoulders is a POWERFUL tool when you use it at the end of wave C.
I refer who may argue that this is an after the fact publication to my idea published on Apr 13th when most traders were bullish on TSLA. Link is also provided below.
Hope this to be useful and can help you in your trades.
Best wishes.
A good example of such pitfalls is inverse head and shoulders at the end of wave A. Traders who rely on this pattern regardless of its position in terms of Elliott waves may expect a new major high and become ready to make a nice profit but they get shocked by the market very soon in the case that they used inverse H&S at the end of wave A.
A clear example of this pitfall happened at the end of wave A on TSLA . Details are shown on the chart.
In fact, Head and Shoulders and inverse Head and Shoulders are nothing but some patterns forming in some types of Elliott wave cycles. You have to know when to use them. Inverse head and shoulders is a POWERFUL tool when you use it at the end of wave C.
I refer who may argue that this is an after the fact publication to my idea published on Apr 13th when most traders were bullish on TSLA. Link is also provided below.
Hope this to be useful and can help you in your trades.
Best wishes.
