"Head and Shoulders" is actually a chart pattern. He describes price reversal patterns that can help you identify the market. At the time of the big reversal, the trend might be over. "Head and Shoulders" has unique characteristics. If most traders use a reverse candle chart, what is the "Head and shoulders" pattern?
That question might sound strange to you. But the question is important to know.
Price Reversal Pattern
The reversal pattern appears after the market, which is in a trend, has lost its momentum. The "Head and Shoulders" pattern is one type of price reversal pattern. In the picture below, you will see the characteristics of a price movement pattern that is considered a "Head and shoulders":