I measure from the neckline of the H&S pattern to the head. I than project that distance downward. My stops are usually placed at the high of the last day. I am fanatical about bleeding risk from my trades. My stops have already been moved down to 3.3605 for heating oil to cut my risk in half.
My recent short in wheat was a perfect example of a competed H&S top pattern.
The 20% of my trades that are profitable go right to their target. They do not linger around the breakout point. Once wheat broke down, it never looked back. It was at its target in a few trading days.
In contrast, I was stopped out of the 30-year for a very small gain this week. Pretty much a break even trade. Notice after the breakout from the H&S bottom, it just hangs around and keeps testing the neckline. In cases like this, I will jam my stops to breakeven or even exit before the weekend starts.
