The head and shoulders technical analysis pattern is a bearish set-up, that works in both up and downtrending markets. In my experience, it can serve as a reversal signal after a bullish lead in. Moreover, it can work, as a conclusion to a bearish market rally. Most important, is where you base your risk, as many funds are squeezing through the pattern, reversing through the ride should right through the head.
Here’s a recent trade I did below during the week of 2/10.
Kevin Michaels, Trading Coach