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Head & Shoulder Scanner



Head & Shoulder Scanner

What is Head & Shoulder?

Head & Shoulder is a bearish reversal chart pattern that forms after an uptrend. It indicates that buying pressure is weakening as the market creates three peaks: a higher peak (head) between two lower peaks (shoulders). A breakdown below the neckline confirms a potential trend reversal to the downside.

How the Head & Shoulder Pattern Forms

  • The price rises and forms the left shoulder before pulling back.
  • It then rallies to a higher peak forming the head.
  • Another pullback occurs, followed by a lower high forming the right shoulder.
  • The neckline is formed by connecting the two swing lows between the peaks.
  • A breakdown below the neckline confirms the bearish reversal.

Trading Strategy

  • Wait for a confirmed close below the neckline before entering a short trade.
  • Many traders place a stop-loss above the right shoulder.
  • Target is often measured by the distance from head to neckline, projected downward.
  • Volume confirmation strengthens the reliability of the pattern.

Advantages

  • Reliable bearish reversal pattern with strong historical performance.
  • Provides clear entry, stop-loss, and target levels.
  • Helps identify distribution phases in an uptrend.

TSR Scanner Features

  • Real-Time Alerts: Get notified when structure starts forming.
  • Fine-Tune Filter: Combine with volume and TSR strength index for accuracy.
  • Custom Tracking: Filter signals from selected watchlists.
  • Backtesting Capabilities: Analyze past Head & Shoulder formations.
  • Flexible Timeframes: Works from intraday to monthly charts.
  • Auto Refresh: Keeps scanner updated continuously.

Fine Tune : You can customise these screeners by clicking on 'Fine Tune Filter' Option

Caution : All these screeners are crafted based on some historical scenarios which may / may notbe applicable here. We recommend to fine tune them according to current market conditions or seek expert advise before taking any decision.
Head & Shoulder
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