Head and shoulders: what's your confirmation?
The head-and-shoulders reversal pattern is famous enough to be self-fulfilling — and fake enough to need strict rules. The neckline break is the classic trigger, but breaks alone fail regularly.
How do you trade it?
- the neckline definition you use (horizontal, sloped)
- your entry: break, retest, or measured move
- how you handle the pattern failing
The chart patterns guide walks through the structure.
Background: Head and shoulders, double tops and double bottoms explained
Reversal patterns are confirmed at a neckline. Learn how head and shoulders and double top patterns form, where confirmation comes and how measured targets are set.
When is a head and shoulders pattern confirmed?
When price closes beyond the neckline, the line through the pullback lows on either side of the head. Before that break, the pattern is incomplete.
How do you calculate a head and shoulders target?
Measure the distance from the top of the head to the neckline and project it from the point where price breaks the neckline. Treat the result as a rough guide.
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