Intermediate 5 min read
Head & shoulders that actually work
80% of "H&S" patterns fail. Here's the structural filter that catches the real ones.
A head & shoulders needs three genuine peaks — left shoulder, a higher head, right shoulder roughly matching the left — connected by a neckline. Most patterns traders label "H&S" fail one of two tests: the shoulders aren't roughly symmetric in height and time, or the neckline isn't horizontal-ish (a sharply sloped neckline usually means you're forcing the pattern onto a trend that hasn't actually reversed).
The real trigger isn't the pattern shape — it's a closing break of the neckline with volume. Trade the break, not the shape.