
“As long as it doesn’t close above this fail safe trend line, this trade is still valid,” says Chief Market Strategist Bob Iaccino.
In this clip, Bob breaks down a head and shoulders setup step by step: how to draw the neckline, why an upward-sloping neckline strengthens the pattern, and how he maps the measured-move target by measuring from the head to the neckline and extending it from the break. He also explains how he manages risk using two stops, including a “fail safe” trend line and a clear “walk away stop” at the high of the right shoulder.
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