I recently found an inverse HS pattern on the NZDCAD weekly. Now there is one big issue I asked myself already many times with the HS pattern. Usually you trade the pattern after confirmation (candle close beyond the neckline), or a pullback after the break of the neckline.
The thing is, you can draw the neckline in so many different ways, that it is very hard to say if it has already been broken or not. Because if it never breaks, it might be a fake HS. You could say one has to wait until the breakout is clearly visible, with a bear or bullrun, but then you would be forced to trade it with the pullback strategy.
What I mean is for example, you can draw the neckline including the wicks or not including them. Or you can change to smaller timeframes and draw it then (which is obviously very similar to including the wicks). Here the NZDCAD example:
Which neckline is the correct one? Depending on which one you follow, the pattern is far from being complete and very close to completion.
Thanks for all your answers!