The most reliable reversal pattern. Three peaks with the middle (head) being the highest, connected by a neckline. Break of neckline triggers entry.
Indicators Used
Rules
📉 H&S Short Entry
- Left shoulder, head, right shoulder must be clearly formed
- Right shoulder must be lower than head
- Volume decreasing from left shoulder → head → right shoulder
- Enter on neckline break with close below
- Target: Head height measured from neckline
📈 Inverse H&S Long Entry
- Three troughs with middle being deepest
- Enter on neckline break above with volume
- Target: Pattern height projected upward
70%
Win Rate
2.4:1
Avg R:R
1-2
Trades/Month
💡 Pro Tip
Volume is critical. It should decline through the pattern and spike on the neckline break. Without volume confirmation, the pattern has a much lower success rate.