Head and Shoulders Pattern On Natural Gas

Here we have a textbook Head and Shoulders Pattern after a strong uptrend on natural gas.

The volatility between the head and the kneckline was 19% so we used this as our main take profit area.

At first it seemed too much of a price move however 4 weeks later not only did we get past the 19% take profit area, price went down further to 26%.

This was a big trade to take, the entry for this set up is below: entering on the break and retest of the pattern. Using the rally candle for the signal to enter was key also.



Also had a 2nd opportunity to enter the downtrend and this was the continuation pattern = symmetrical triangle (if located in a downtrend then the chances are that breakout will be to the downside



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