Also known as a trend reversal formation it is formed by the two peaks (shoulders) and the higher peak (head). From there you can see the neckline that solidifies this patterns formation.
So how do you draw a head and shoulders pattern in TradingView?
TradingView has a great tool for drawing head and shoulder patterns. All you have to do is:
- Find a H&S Pattern = Two Peaks (Shoulders) and One Center Higher Peak (Head)
- Hover over 4th drawing tool down (should be XABCD Pattern)
- Click on that
- Follow Down To Head and Shoulders and click
- Click on first left shoulder point
- Then each point from there until finished with bottom right shoulder point
- Neckline will automatically be drawn
Practice a bit until you start getting it down. You can start on lower time frames like 30 minute or 1 hour to find more of them quickly. Below we will go over some free indicators and also paid indicators that will help you find some to practice on in TradingView.
Head And Shoulders Pattern
Once you start drawing these over and over you will then just start seeing them automatically. That goes for any pattern with us we trade M’s and W’s a lot. I literally went back and drew hundreds of them before I started trading them and now I see them automatically.
So you have the 1st peak (shoulder), 2nd and highest peak (head), and the 3rd peak (other shoulder).
Finally you have the neckline which is made up connecting the lower points of the head and shoulders. The slope doesn’t matter too much but they say when it is sloping down percentage wise it has more success. I am not sure on the exact numbers here. Will do some research and come back and update or have another post on it.
Head And Shoulders Indicator
There are actually quite a few accurate indicators out there both paid and free. Unfortunately there really aren’t any indicators directly in Tradingview.
The best software I have found that works for most all patterns and is very accurate can be found at HarmonicPattern.com. They do have a Free Trial and you can get half off the first month through my link here. You can just sign up for a free account to start off so you can take a peak behind the curtain.
They have an API setup with TradingView so you can use any date feed you find in TradinView. They use what is called a Machine Learning Pattern Recognition.
They also have Triple Top and Triple Bottom patterns that you trade essentially the same way as Head and Shoulders. One of the biggest positives with Harmonic Patterns software is their alert system they have setup. So when a pattern comes up they send it to telegram with a picture of the pattern and also a link so you can click and go directly to the chart.
This makes it easy to move the pattern over to your tradingview or just keep it up on a separate screen. Their website is also very mobile friendly so even if you just go off your phone it is easy to move right over. Below is an example of one on the 4 hour.
Free Head And Shoulders Indicators (Scripts) In TradingView
I have managed to find only one free indicator in TradingView that seems to do a decent enough job of recognizing where Head and Shoulders might be.
This indicators is 100% free all you have to do is signup for a free tradingview account here then go to this link afterward to add to your favorites. Unfortunately you will not have access to the script. I have looked into coding a H&S indicator but just like with Harmonic Patterns it is very tough and the top developers like those at HarmonicPattern.com have done a great job:
Overall Head and Shoulders is a great pattern to master and trade. You can add in the triple bottom and triple top to this as well. I personally don’t trade Head and Shoulders patterns that often. I stick to Harmonic Patterns like the Bat, Gartley, Crab, Deep Crap, Butterfly, and the Alternate Bat.
I do trade both the D and C points of harmonic patterns. The other patterns I absolutely love and find high accuracy with are Wedges and Triangles which HarmonicPattern.com also gives access to with alerts.
The work around for not having access to these indicators on TradinView but wanting to get for free is to find a Free MT4 indicator out there to use then you can just copy over to TradingView. There are literally hundreds and hundreds of free indicators on MT4 the only problem is finding the most accurate ones. I will be starting a list of free Harmonic Patterns Indicators that you can use on MT4 so you can simply implement those then move over to your TV account.