Head & Shoulders

SHORT

The tell: Higher high, then a lower high on fading volume, over one shared neckline.

What it looks like: Three pushes up — a peak, a higher peak, then a lower one on fading volume — all resting on one shared support: the neckline.
Why it works: The failed higher high tells trend buyers the run is over; the neckline break forces them all out at once.
Entry: Break and close below the neckline (short).
Stop: Above the right shoulder.
Target: Head-to-neckline height projected below the neckline.
How it fails: Neckline break that reclaims immediately — classic bear trap and squeeze fuel.

Reading it in a textbook is not the same as spotting it live. Drill the head & shoulders on charts generated fresh every time, or try today’s five.