Inverse Head and Shoulders Confirmation

Beginner Questions Candlesticks, Chart Patterns, and Price Action
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Hey there,

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:

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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!

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I draw the trend lines using the wicks. By the way, I’m no expert, so take my advice with a grain of salt. Furthermore, I don’t trade a bullish H&S unless the neckline is down sloping.

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**The head and shoulders pattern is a reversal pattern. On the longer term chart of the weekly’s this is not a reversal of trend. When I trade H&S patterns, I look for them to be at the end of a trend, swinging the opposite direction. Analyze the weekly’s carefully before trading this. I always look for the trend leading up to the head and shoulders to be at least as big as my TAKE PROFIT.

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a useful thread postings. How to stride?