For individual investors who like to sell stocks short in bad markets, the head-and-shoulders pattern often provides a reliable entry. IBD founder William J. O’Neil observed in “How to Make Money in Stocks” that when identifying a top in a stock, “head-and-shoulders patterns are among the most reliable.” Yet problems sometimes occur in interpretation. “If you have only a little knowledge of charts, you can misinterpret what is a correct
Source : Investors.com