Head and shoulders pattern:

🔹 The pattern is typically seen as a bearish signal and suggests that the price may be headed for a downtrend.

🔹 It is important to wait for the pattern to fully form before placing any trades. This means waiting for the second shoulder to form before placing an entry order below the neckline.

🔹 The neckline is a key level to monitor and acts as a support level. If the price breaks below the neckline, it may be a strong bearish signal.

🔹 Some traders also look for volume to confirm the pattern. Generally, volume should increase as the pattern forms and well as when the price breaks below the neckline.

🔹 It is also important to manage risk when trading the head and shoulders pattern. This means placing a stop loss above the pattern's high point to limit potential losses if the trade goes against you.