Hidden Rewards Of Cycles by Mohab Nabil, MSTA
Head and shoulders patterns appear frequently in price charts. By using simple cyclical analysis you can forecast not only the price target, but also when that price will be reached.
Making a profit in the stock market is all about timing. Despite this, many investors and analysts still do not treat the dimension of time with the consideration
it is due. The timing factor, along with risk and reward, should be sufficiently weighted when trading a specific pattern. To say that the reward-risk ratio of a given trade is 3:1 is not completely accurate; this is because the time frame in question has not been taken into account, and the time frame may make all the difference whether you make three points or lose one point.
To trade profitably, you need to project the amount of time it will take for the price to reach its expected target. By doing so, you will be able to handle money management techniques in a more proficient way and identify patterns that generate fast or slow price movements.