How I trade Head and Shoulder Price Action Pattern/Structure
Updated
Hello everyone:
In this quick educational video, I will go over how I utilize Head and Shoulder Pattern/structure in the market.
Specifically, how I identify reversal price action from a Head and Shoulder Pattern.
It's important to understand that Head and Shoulder Is a reversal structure in the market.
When we identify these patterns, they are usually at the top or the bottom of the over price action,
and its signaling a bullish or a bearish trend may be exhausted, and a reversal trend may begin.
Typical H and S will have a bullish move up, followed by a continuation correction (Left Shoulder), and move up again.
At the peak (Head) , instead of a continuation to push up further, we then see a reversal bearish push down.
Then, we see price form that bearish continuation correction (Right Shoulder) now, looking to push the price back lower.
Just like any other price action structures/patterns that I have been talking about, these structures/patterns will appear in any time frames, any market.
So it's important to understand multi-time frame analysis and top down approach.
A 5 min H and S pattern may not be that strong reversal to give you 100 plus pips because the HTF is showing us different bias.
From my experiences, a H and S pattern works best when we spot on the LTF price action. When we have a clear bias on the HTF for a potential bearish reversal, we go down to the LTF to look for confirmation and entry.
Remember a H and S pattern will not always be “textbook” perfect like you will learn from various courses/lessons. The market itself is not perfect, so remember that when you analyze the market.
Last but not least, and inverse H and S is just a mirror of a typical H and S. It's just now you are spotting them at the bottom of the overall price action, and rather to reverse into a bullish trend.
As always, any questions, comments or feedback please let me know.
Thank you
Jojo
In this quick educational video, I will go over how I utilize Head and Shoulder Pattern/structure in the market.
Specifically, how I identify reversal price action from a Head and Shoulder Pattern.
It's important to understand that Head and Shoulder Is a reversal structure in the market.
When we identify these patterns, they are usually at the top or the bottom of the over price action,
and its signaling a bullish or a bearish trend may be exhausted, and a reversal trend may begin.
Typical H and S will have a bullish move up, followed by a continuation correction (Left Shoulder), and move up again.
At the peak (Head) , instead of a continuation to push up further, we then see a reversal bearish push down.
Then, we see price form that bearish continuation correction (Right Shoulder) now, looking to push the price back lower.
Just like any other price action structures/patterns that I have been talking about, these structures/patterns will appear in any time frames, any market.
So it's important to understand multi-time frame analysis and top down approach.
A 5 min H and S pattern may not be that strong reversal to give you 100 plus pips because the HTF is showing us different bias.
From my experiences, a H and S pattern works best when we spot on the LTF price action. When we have a clear bias on the HTF for a potential bearish reversal, we go down to the LTF to look for confirmation and entry.
Remember a H and S pattern will not always be “textbook” perfect like you will learn from various courses/lessons. The market itself is not perfect, so remember that when you analyze the market.
Last but not least, and inverse H and S is just a mirror of a typical H and S. It's just now you are spotting them at the bottom of the overall price action, and rather to reverse into a bullish trend.
As always, any questions, comments or feedback please let me know.
Thank you
Jojo
Note
Check out other Continuation/Reversal Price action Structures/Patterns.Double tops/Bottoms:
Note
Ascending/Descending Reversal Structure: 
Note
Bullish/Bearish Flag Continuation Structure: 
Note
Different Continuation/Reversal Price action structure: 
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.