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Complex Head and Shoulders

The Complex Head and Shoulders has multiple shoulders or multiple heads, a variation of the basic pattern.

HeadNecklineComplex H&S: Multiple shoulders/heads → Two-way movement

Pattern Details

Category

reversal

Success Rate

82%

Average Move

-17%

Duration

4-8 weeks

Pattern Structure

Pattern Structure
Key components that define this chart pattern
  • 1
    May have 2 left shoulders and/or 2 right shoulders
  • 2
    May have 2 heads (Double Head)
  • 3
    Neckline may not be straight

Trading Rules

Trading Rules
Essential rules for trading this pattern successfully
  • ✓
    Enter short position when price breaks below neckline
  • ✓
    Count number of shoulders and heads to identify
  • ✓
    Target = Distance from head to neckline
  • ✓
    Stop loss above highest right shoulder
Trading Tips
  • Complex variation of Head and Shoulders
  • Higher success rate than basic pattern
  • Neckline may be curved

Statistics

Breakout Statistics
Bullish Breakout18%
Bearish Breakout82%
Performance Metrics
Average Rise+4%
Average Decline-17%
Pullback Rate5%