?How to trade head and shoulders pattern

Head and shoulders is one of the most famous chart pattern
:look at the picture

.as you see, in up trend the right shoulder is lower than head

.In downtrend the right shoulder is higher than head

I will show you a simple way to trade this pattern

:First we must detect the trend

in this picture the trend is down (price moving down from point A to point B)

:Then we must detect head and shoulders (SAH) pattern

After break of neckline we can expect price to moving down

Neckline is simple line that connect left shoulder to right shoulder

:then I add simple median line

As you see the upper median line and neck line cross each other. This cross is important zone we call energy point

.if price reach this point, we will  enter short  to reach the median line according to Andrews 1^st principle

.I wish you all good luck

Kamran Jafargholi