Head and Shoulders Pattern — Entry, Exit & Stop Loss Guide
How to identify the Head and Shoulders pattern, when to enter short, where to place your stop loss, and when NOT to trade it.
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About This Infographic
The Head and Shoulders is one of the most reliable bearish reversal patterns in technical analysis. This infographic shows you exactly how to identify the three peaks (left shoulder, head, right shoulder), where the neckline sits, when to enter a short position (neckline break with volume), where to place your stop loss (above the right shoulder), how to calculate your take-profit target using the measured move, and the critical conditions that invalidate the pattern — saving you from false breakout losses.
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