According to Bulkowski's data, Complex Head-and-Shoulders Top: – Overall performance rank (1 is best): 9 out of 53 – Upward price trend leading to the pattern – If the pattern shows an inner head-and-shoulders top, then trade it – Patterns with near horizontal necklines perform best – Patterns with an extended right shoulder perform marginally better
Wait for the confirmation: The pattern confirms as valid when price closes below an up-sloping neckline or below the right armpit when the neckline slopes downward.