Head and Shoulder Pattern

The head and shoulders pattern is good way to show that BULLISH will lead the way, and very famous among short sellers. Short sellers are people who get profit from downtrend, sell now buy next day!

It forms when candlestick creates three peaks, but the middle peak must higher than the other peaks, after that the candlestick drops. Then make line which connecting the bottom of the two points.

First stock is stay sideways. Investors start to buy when they think that stocks are undervalued, then they hurries to buy, because stock has run to high investors get fear and sell it. After that Investors realize get back again and buy more till get new high, then sell for profit taking. The last, buyer can not stand against seller so stock price has small tiny up and get down below sideways points. Looks picture below :

How to get gain from Head Shoulder pattern. You must used short sell. Short sell when price move below neck line, and buy it when it reach the bottom (Same distance between neck and head).

This can be GOOD for warning that stock will be BULLISH. MORE longer the periodic which formed The Head Shoulder Pattern more definitive BULLISH will happened!!