Head and Shoulders, Not The Shampoo
Part of Art of Chart Reading
People often talks about the head and shoulders formation. I have seen many websites showcasing charts after charts that are NOT head and shoulders at all, although they claim so. It is not a good idea mixing up price patterns as that will confuse you and negatively affect your judgement. I am going to explain how the classic head and shoulders pattern looks like and how to use it properly.
Following is a chart of 10-min Emini Dow future. It shows a pretty standard head and shoulders top formation. As usual, the devil is in the details.