According to Bulkowski's data,
Complex Head-and-Shoulders Top:
– Overall performance rank (1 is best): 9 out of 53
– Upward price trend leading to the pattern
– If the pattern shows an inner head-and-shoulders top, then trade it
– Patterns with near horizontal necklines perform best
– Patterns with an extended right shoulder perform marginally better
Wait for the confirmation:
The pattern confirms as valid when price closes below an up-sloping neckline or below the right armpit when the neckline slopes downward.
Not a financial advice.
Complex Head-and-Shoulders Top:
– Overall performance rank (1 is best): 9 out of 53
– Upward price trend leading to the pattern
– If the pattern shows an inner head-and-shoulders top, then trade it
– Patterns with near horizontal necklines perform best
– Patterns with an extended right shoulder perform marginally better
Wait for the confirmation:
The pattern confirms as valid when price closes below an up-sloping neckline or below the right armpit when the neckline slopes downward.
Not a financial advice.