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Chart Patterns · Price Action Mastery Advance · Lecture 4 · 26:36 video · Urdu / Hindi

Head and shoulders pattern: how to confirm and trade it

Head and shoulders is one of the best-known reversal patterns, and one of the most misread. This lecture covers how it works, the biggest mistake traders make with it, and safer ways to trade it.

Dr. Qazi Abdul Basit
Video lesson by Dr. Qazi Abdul Basit, Ph.D · Forex & Gold trader since 2013
Notes by the Qazi Forex Tips team · Updated 23 October 2026
Watch in Urdu / Hindi · 26:36·Open on YouTube

In this lecture

  • What the head and shoulders pattern is and how it works
  • The biggest mistake traders make with it
  • When the pattern is likely to hold or fail
  • The first pullback entry after the break
  • Lower-risk ways to trade the pattern
Dr. Qazi Abdul Basit
Dr. Qazi's takeIn his own words, from his lectures and teaching

Traders often make one big mistake with the head and shoulders. In this lecture I show that mistake and how to avoid it, the two factors that tell you whether the pattern is likely to hold or fail, and how to trade the first pullback.

From the lecture

No method is profitable if there are no rules of entry and exit. Follow the rules, control your emotions and have a money management plan.

From the lecture

Lesson notes

How the pattern forms

After an uptrend, price makes a peak (left shoulder), a higher peak (head) and a lower peak (right shoulder). The line through the two lows between them is the neckline. The inverse pattern forms after a downtrend and points up.

Confirmation: the neckline

The pattern is only complete when price closes beyond the neckline. Selling at the right shoulder before the break is the most common mistake: many patterns never break the neckline and the uptrend continues.

Entry, stop loss and target

  • Break entry: after a candle closes below the neckline.
  • First pullback entry: wait for price to return to the broken neckline and reject it. The stop loss can then sit above the pullback or the right shoulder.
  • Target: measure from the head to the neckline and project that distance from the break point.
  • Invalidation: a close back above the neckline after the break weakens the pattern.

Khulasa (Roman Urdu / Hindi)

  • Left shoulder, head, right shoulder aur neckline.
  • Neckline ke neeche candle close se pehle sell na karein.
  • Behtar entry: neckline par pehla pullback.
  • Target: head se neckline ka faasla, break point se aage.

Questions

When is a head and shoulders pattern confirmed?

When a candle closes beyond the neckline. Before that it is only a possible pattern.

How do I set the target?

Measure the distance from the head to the neckline and project it from the point where price broke the neckline.

Is the head and shoulders pattern bullish or bearish?

The normal pattern is bearish (after an uptrend); the inverse pattern is bullish.

How reliable is the head and shoulders pattern?

It is widely watched, but many patterns fail before the neckline breaks. Trade only after confirmation.

What timeframe is best for head and shoulders?

H1, H4 and Daily patterns are clearer than those on M5.

What is a neckline retest?

Price returning to the broken neckline before continuing, often used as a lower-risk entry.

Related lessons

Chart PatternsTriangle patterns: symmetrical, ascending and descendingPrice Action BasicsSupport and Resistance: how to draw it, and why it failsPrice Action BasicsHow to identify and avoid false breakouts

Education only, not financial advice. Trading forex, Gold and CFDs carries a high risk of loss. Examples are for learning; test any method on a demo or in a simulator before using real money.