Hey traders so today noticed that on Soybeans there is what is known as an Inverted Head & Shoulders Chart Pattern. This is why I believe you don't need indicators because if you know how to spot these patterns then you will find trade opportunites. If you are new to chart patterns check out some of my other videos I have covered them there before and will also make more in future videos.
So the way you trade the Head and Shouders top is you measure the distance from the top of the head to the neckline then project that target higher. But your stop loss above the right shoulder or the head. However this is an inverted Head and Shoulders so it is the opposite.
Now I am not a farmer and never have even visited a farm although I would love too one day to see all this in action! I will say I have played the game farming simulator though. So I have a little knowledge. 😃
All joking aside so I have no idea every single thing that can influence the price of these grain markets. I do know that Weather, Supply and Demand can be a major factor. Also seasonally grains normally rise during the planting season which is now.
However regardless of your fundamental knowledge you can still trade the technical analysis formation alot of times fundamentals are already priced in the charts. So the signal to trade the formation when the market breaks the neckline which is now has!
Always use Risk Management! (just in case your wrong in your analysis)
Hope This Helps Your Trading
Clifford
So the way you trade the Head and Shouders top is you measure the distance from the top of the head to the neckline then project that target higher. But your stop loss above the right shoulder or the head. However this is an inverted Head and Shoulders so it is the opposite.
Now I am not a farmer and never have even visited a farm although I would love too one day to see all this in action! I will say I have played the game farming simulator though. So I have a little knowledge. 😃
All joking aside so I have no idea every single thing that can influence the price of these grain markets. I do know that Weather, Supply and Demand can be a major factor. Also seasonally grains normally rise during the planting season which is now.
However regardless of your fundamental knowledge you can still trade the technical analysis formation alot of times fundamentals are already priced in the charts. So the signal to trade the formation when the market breaks the neckline which is now has!
Always use Risk Management! (just in case your wrong in your analysis)
Hope This Helps Your Trading
Clifford
Note
Here is Head & Shoulders Top to compare same pattern one is topping the other is bottoming.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.