Curved support & resistanceReversalBearish bias

Head & Shoulderspattern.

A reversal structure after an uptrend built on the progressive failure of strength. The book calls it structurally honest: it reveals weakness that is already developing while price still looks firm.

Needs a clear prior uptrend.
Right shoulder is the key stage.
Neckline close confirms; neckline reclaim invalidates.
Head-to-neckline height is the reference.

The structureTransition

Idealised outline. The dashed yellow line is the support or resistance the book asks you to draw before naming the pattern.

How the book reads it

01
Structure — how to draw it
Three peaks around a horizontal or slightly sloping neckline: a left shoulder, a higher head and a lower right shoulder. The neckline joins the pullback lows between the peaks and is the decision level.
02
Psychology — who is in control
Buyers keep expecting continuation while sellers quietly distribute into optimism. The right shoulder, a rally that fails to reach the head, shows effort without progress and marks control shifting to sellers.
03
Confirmation
The book requires a decisive close below the neckline, ideally a strong bearish candle with expanding volume. A failed retest of the neckline from below supports the reversal reading.
04
Risk — where the idea is wrong
The book’s common invalidation is above the right shoulder high or the neckline retest zone; a reclaim of the neckline is treated as failure. The head-to-neckline distance projected from the break is the reference.
05
Common trap
Treating every pullback as a fresh opportunity to join the uptrend is the trap. The book also cautions that the pattern loses meaning without a prior uptrend, or when it forms in sideways or already weak markets.

On real charts

Annotated by Mr. Chartist for the book: the structure, the breakout, the pattern's height and the level that proves the idea wrong. Historical charts for education — not a view on any stock today.