Part 54 | Head and Shoulders
The Head and Shoulders pattern forms three peaks — the left shoulder, the higher head, and the right shoulder. It is considered one of the most reliable trend reversal patterns. When the neckline breaks, it confirms the end of the uptrend.
How to trade:
1. The right shoulder forms lower than the head = weakness
2. The neckline breaks = trend reversal confirmed
3. Enter on a retest of the neckline, with a stop above the right shoulder
Remember: Don’t trade an incomplete pattern — let it fully form.
Follow 👇
The Head and Shoulders pattern forms three peaks — the left shoulder, the higher head, and the right shoulder. It is considered one of the most reliable trend reversal patterns. When the neckline breaks, it confirms the end of the uptrend.
How to trade:
1. The right shoulder forms lower than the head = weakness
2. The neckline breaks = trend reversal confirmed
3. Enter on a retest of the neckline, with a stop above the right shoulder
Remember: Don’t trade an incomplete pattern — let it fully form.
Follow 👇