Useful CHART PATTERNS: HEAD AND SHOULDER

HEAD AND SHOULDER is One of the useful chart pattern How the Head & Shoulder Pattern Forms: * The price rises and forms the left shoulder before pulling back. It then rallies to a higher peak, forming the head. * Another pullback occurs, followed by a lower high forming the right shoulder. * The neckline is formed by connecting the two swing lows between the peaks. * A breakdown below the neckline confirms the bearish reversal. * Wait for a confirmed close below the neckline before entering a short trade. * Volume confirmation strengthens the reliability of the pattern. Advantages * Reliable bearish reversal pattern with strong historical performance. * Provides clear entry, stop-loss, and target levels. * Helps identify distribution phases in an uptrend.