Head and Shoulders

Hello everyone! I'm starting my tutorial on Technical Analysis patterns! Today I'm going to tell you about a reversal pattern called Head and Shoulders.

You can often see Head and Shoulders after an ascending trend. The pattern looks like 3 consequent tops. The middle one (Head) is the highest and two others (Shoulders) are lower than the Head and are roughly on the same height. The main condition for this pattern to form is a retest of a support line which became a resistance line after a breakout. The right shoulder forms where it happened. Height from the Head to the Neck line is the materialization of this pattern. As you can see on the chart, it has perfectly materialized, but it's important to get the first takes before the pattern has fully materialized.

You can buy on a retest or the breakout with a stop after the top of the Right Shoulder. It is recommended to use this pattern on a 5 or more min. charts.
I'd be glad to see your thoughts in the comment section. Which pattern should I cover next time? Leave a like if this post was useful for you.