@katastrof89, Not an attractive one but still applies. Or it's a Triple Top, Inverse Cup and Handle. What ever it is, it's broken below the support and is clearly on its way down further until it breaks above the new resistance.
Tradersweekly
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@timonrosso87, It does not have anything with attractivity but with statistics. There are specific rules for pattern classification.
timonrosso87
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@Tradersweekly, Chart patterns are nothing more than confirmation biases. Pop the chart on a Weekly chart and you'll see a H&S. Some traders use a neckline that's diagonal with a H&S. They are not wrong, but I prefer Horizontal necklines for more strength over a certain support. Some see an Inverse Cup and Handle, Some see a consolidation box formation, others see the 3rd wave of an Elliot Wave. The teachings of a H&S is a LS (Small rounding top), Head ( Big rounding top), RS (Small rounding top) and a neckline. As long as the two Shoulders are lower than the head, it can be deemed as a H&S... The attractivity of a H&S is purely what is seen via theory versus reality. I've used the same chart pattern system for the past 18 years and have learnt that chart patterns are nothing more than confirmation bias with the probabilities of where a market is more likely to head. But I do enjoy a good banter every now and then. Thank you :)
Tradersweekly
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@timonrosso87, I have no issue with the horizontal or sloped neckline. The neckline is dependent on the position of the shoulders (whether they are at the same level or not). But from the point of technical analysis, a problem arises with the backtesting and statistics; especially when anything can be considered head and shoulders, cup, or any other pattern. However, you are right also. A person can trade anything that resembles these patterns, but they lack statistical data about their actual performance.
vychod
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@katastrof89, I agree. Author should be read more about patterns especially H&S
Tradersweekly
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Not head and shoulders, but I agree on being bearish. Thanks for sharing.