Head & Shoulders
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The Head & Shoulders pattern is a bearish formation.
In a head & shoulders pattern, you will see:
1. A new relative high (left shoulder) followed by a
2. Retracement to a support level, followed by a
3. New high (head) and subsequent retracement to the same support level, followed by a
4. Lower high (right shoulder) roughly matching the first high( left shoulder), then a
5. Break of structure (previous support) and further move to the downside, and
6. Possible retest of the previous support that turns into resistance as the downtrend continues.