A Case Study on EURAUD (Head & Shoulders Pattern)
This chart demonstrates a classic example of how effectively the IQ FX Gann Levels Indicator can be used to trade head and shoulders pattern. The EURAUD M5 chart below shows a clear, profitable setup using Gann levels. Let’s break it down:
1. Identifying the Head & Shoulders Pattern
- The chart above shows a prominent head and shoulders formation, one of the most reliable reversal patterns in technical analysis.
- With the Gann Level Indicator, each part of the pattern—shoulders, head, and neckline—lines up with precise levels, making it easier to visualize the setup.
2. Measuring the Distance to the Neckline
- From the top of the head to the neckline, there’s a gap of around 50 pips, perfectly aligning with a Gann level.
- This measurement helps traders set potential profit targets with higher accuracy, knowing that if the neckline breaks, there’s a solid 50-pip range to work within.
3. Neckline Breakout Confirmation
- When the price breaks below the neckline (a crucial signal in head and shoulders setups), it aligns closely with a Gann level.
- This breakout confirmation indicates strong downward momentum, suggesting a profitable entry point for short positions.
4. Precise Target Setting
- The Gann Level Indicator then identifies a clear target level below the neckline, approximately 50 pips away.
- This target level is hit accurately, as shown in the chart, allowing traders to take profit with confidence.
5. Profit Target Reached
- The target Gann level is reached soon after the neckline breakout, completing the trade successfully.
- Traders can see the indicator’s precision in marking support and resistance levels that work as profit-taking points.
Want More Strategies Like This? In our exclusive strategy guide PDF, we explain more trading strategies that combine price action patterns with Gann levels. This guide is free with the purchase of our Gann Level Indicator and provides deeper insights into profitable trading techniques across various market setups.
With the Gann Level Indicator, new and experienced traders alike can navigate the markets with precise levels that enhance entry, exit, and profit targets. Try it out and take your trading to the next level!
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✅MT5- https://www.mql5.com/en/market/product/119707
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