How to Find Legitimate Head and Shoulder Patterns

Hey Guys!

I just wanted to post a quick tutorial on how to find legitimate Head and Shoulder patterns.

In this lesson, I explain the 5 rules that a Head and Shoulders pattern must abide for it to be legitimate.

Here's the rules:

#1 Both necklines must be parallel.

#2 The main neckline cannot be broken out of surpassed before the right shoulder's price level is reached.

#3 The Head and Shoulders must be relatively flat.

#4 The top neckline can only be adjusted to a wick between the main pivot and the last correlating major pivot.

#5 The prior trend must be in the opposing direction. (which is up in the case of a "short" Head and Shoulders Pattern )

That's it! I hope this helps!

Have a great day!

Ken