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Head & Shoulders

Three peaks: left shoulder, higher head, right shoulder; breakdown through neckline signals reversal.

ReversalBearishHigh reliability4h1D1W

Concept

Common topping pattern. After uptrend, momentum stalls. A break below the neckline confirms a bearish reversal.

Trading Plan

Prior uptrend.
Head peak higher than both shoulders.
Neckline connects swing lows between shoulders and head.

Confirmation

Close below neckline (ideally with volume).
Retest of neckline failing as resistance strengthens signal.

Invalidation

Reclaim and close back above the neckline after breakdown.
Higher high above right shoulder.

Targets

Target = Head - Neckline projected below neckline.
Consider partial at 0.618 of the measured move.

Measured move: Height = Head - Neckline; Target = Neckline - Height

Risk

Above right-shoulder high or neckline retest high.