ICT Mentorship Core Content - Month 03 - Market Maker Trap Head Shoulders Pattern

for the month of november 2016 ict mentorship we're talking about false tops and bottom patterns as it relates to classical head and shoulders now head and shoulders pattern is typically seen with a price high that trades in a small little retracement then it creates a higher high and it retraces back lower and it creates another lower price peak or short-term high and then we classically refer to that as the neckline and classical support resistance ideas are seen here where if that neckline is broken many times you'll see it retrace or pull back up to that neckline and then sell off again in the form of selecting targets you can measure the range from the neckline up to the head or the highest peak and subtract that range from the neckline once price breaks below it and i'll give you a reasonable price objective now the problem with this pattern okay it's because it's taught in all of our retail books and such every trader out there when they first get in their charts they're always looking for these types of patterns but generally price will form these genuinely at intermediate or long-term highs only and due to the low understanding of most retail traders they tend to seek these classic topping patterns on lower time frames and many times at a significant low in price but they marry the pattern the opposite is referred to as an inverted head and shoulders pattern this is a false pattern false bottom pattern we're going to be teaching in here so we're not really teaching these classical patterns uh they can be found on the internet i'm not going to teach that but what i'm actually going to tell you is how you can capitalize on these patterns when they appear in charts and our higher time frame premise indicates the opposite direction is unfolding but an inverted head and shoulders pattern is typically seen with a short-term low that's met with a lower low then it makes a higher short-term low and you connect the highs that form around those three successive lower lows and we refer to that as the neckline