- Entry
- 1.4205
- Stop
- 1.3000
- TP1
- 1.5000
- TP3
- 2.0000
Head and Shoulders Pattern
The Head and Shoulders formation reflects distribution by institutional participants at swing highs. Breakdown below the neckline triggers aggressive downward continuation.
Identification Rules & Structural Requirements
Checklist required before validating this formation.
- 1.Left shoulder forms at the end of a strong bull rally.
- 2.Head pushes to a higher high on diminishing buying momentum.
- 3.Right shoulder forms a lower high, showing exhaustion from bulls.
- 4.Neckline connects the reaction lows between the three peaks.
A breakout and candle close above the right shoulder high.
Trade this setup with mathematical R:R
A chart pattern only provides positive expectancy when your reward targets exceed your risk boundaries. Always compute your position size and breakeven win rate before executing.
Active & Graded Calls Demonstrating Head and Shoulders Pattern
Empirical evidence from TradeDiscuss's public prediction ledger.
- Entry
- 79,972.62
- Stop
- 79,800.00
- TP1
- 80,200.00
- TP3
- 80,400.00
- Entry
- 154.594
- Stop
- 156.924
- TP1
- 150.740
- Conviction
- high
This USDJPY short level is critical today as it retests a key support, with high volume confirming liquidity sweep. Invalidation occurs above 135.50, where price breaks resistance and enters new territory.
- Entry
- 1.34905
- Stop
- 1.36900
- TP1
- 1.31510
- Conviction
- low
GBPUSD's 1.3550 level is critical today as it's a major support retest, with high volume confirming liquidity sweep. Invalidation occurs above 1.3575, negating short bias.