head-and-shoulders

Name: head-and-shoulders
Author: SKE-Labs

15stars2forks

How to install head-and-shoulders?

ske-labs/agent-trading-skills/head-and-shoulders

$npx -y skills add SKE-Labs/agent-trading-skills --skill head-and-shoulders

Installs into the current project.

Summary

Define and test head-and-shoulders or inverse patterns. Use when measuring objective pivots, neckline breaks/retests, symmetry, invalidation, and measured-move outcomes.

Files · 1

View on GitHub

SKILL.md

1	# Head and Shoulders Pattern
2
3	A conventional reversal shape following a prior trend. The neckline break and target remain hypotheses whose conditional outcomes must be measured.
4
5	## Pattern Structure
6
7	### H&S (Bearish Reversal)
8	1. Left Shoulder — Rally to new high, pullback
9	2. Head — Higher high than left shoulder, pullback
10	3. Right Shoulder — Lower high than head, starts to drop
11	4. Neckline — Connect the two pullback lows
12
13	### Inverse H&S (Bullish Reversal)
14	1. Left Shoulder — Drop to new low, bounce
15	2. Head — Lower low, bounce
16	3. Right Shoulder — Higher low, starts to rise
17	4. Neckline — Connect the two bounce highs
18
19	\| Criteria \| Requirement \|
20	\|----------\|-------------\|
21	\| Activity \| Compare right-shoulder volume with the left using a predeclared statistic \|
22	\| Symmetry \| Shoulders roughly equal height \|
23	\| Prior trend \| Must have existing trend to reverse \|
24
25	## Workflow
26
27	### 1. Get Exact Data
28
29	```
30	get_candles_around_date(symbol=<symbol>, exchange=<exchange>, interval=<interval>, date=<head_date>)
31	```
32
33	### 2. Mark Structure Points (3 parallel highlight calls)
34
35	```
36	draw_chart_analysis(action="create", drawing={
37	"type": "highlight",
38	"points": [{"time": <ls_time>, "price": <ls_price>}],
39	"options": {"text": "LS"}
40	})
41
42	draw_chart_analysis(action="create", drawing={
43	"type": "highlight",
44	"points": [{"time": <head_time>, "price": <head_price>}],
45	"options": {"text": "Head"}
46	})
47
48	draw_chart_analysis(action="create", drawing={
49	"type": "highlight",
50	"points": [{"time": <rs_time>, "price": <rs_price>}],
51	"options": {"text": "RS"}
52	})
53	```
54
55	### 3. Draw Neckline
56
57	```
58	draw_chart_analysis(action="create", drawing={
59	"type": "support",
60	"points": [
61	{"time": <neckline_left_time>, "price": <neckline_left_price>},
62	{"time": <neckline_right_time>, "price": <neckline_right_price>}
63	],
64	"options": {"text": "Neckline"}
65	})
66	```
67
68	For inverse H&S, use `"resistance"` instead of `"support"`.
69
70	### 4. Enter
71
72	Standard: Enter on neckline break + close with volume. Stop above right shoulder.
73	Preferred: Wait for neckline break, then retest. Enter on rejection. Tighter stop.
74	Target: Head-to-neckline distance projected from break point.
75
76	## Evidence and Validation
77
78	- Treat the setup as a testable hypothesis, not a prediction. Define thresholds, entry, invalidation, and exit before evaluating outcomes.
79	- Calibrate on the same instrument, venue, session, and timeframe. Use closed candles and a held-out or walk-forward sample; record every variant tried.
80	- Include spread, fees, slippage, borrow or funding, partial fills, and latency. Reject the setup when net expectancy is not positive or depends on one narrow parameter.
81	- Return observed inputs, missing data, cost assumptions, entry, invalidation, exit, and a valid, watch, or no-trade status.
82	- Research basis: [Lo, Mamaysky & Wang](https://www.nber.org/papers/w7613) studied algorithmic head-and-shoulders recognition and found conditional information in some samples, not a guaranteed reversal.
83
84	## Key Rules
85	- NEVER trade before neckline break — pattern incomplete until confirmed
86	- Volume differences are contextual and do not validate the pattern without a neckline break
87	- Must have a prior trend to reverse; H&S in a range is invalid
88	- Record shoulder-height asymmetry rather than assuming a lower right shoulder always increases expectancy
89
90	## Related Skills
91	- double-top-bottom — Similar reversal family
92	- multi-timeframe-analysis — HTF H&S signals major reversals

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head-and-shoulders

15stars2forks

View on GitHub

How to install head-and-shoulders?

ske-labs/agent-trading-skills/head-and-shoulders

$npx -y skills add SKE-Labs/agent-trading-skills --skill head-and-shoulders

Installs into the current project.

Summary

Define and test head-and-shoulders or inverse patterns. Use when measuring objective pivots, neckline breaks/retests, symmetry, invalidation, and measured-move outcomes.

Files · 1

View on GitHub

SKILL.md

1	# Head and Shoulders Pattern
2
3	A conventional reversal shape following a prior trend. The neckline break and target remain hypotheses whose conditional outcomes must be measured.
4
5	## Pattern Structure
6
7	### H&S (Bearish Reversal)
8	1. Left Shoulder — Rally to new high, pullback
9	2. Head — Higher high than left shoulder, pullback
10	3. Right Shoulder — Lower high than head, starts to drop
11	4. Neckline — Connect the two pullback lows
12
13	### Inverse H&S (Bullish Reversal)
14	1. Left Shoulder — Drop to new low, bounce
15	2. Head — Lower low, bounce
16	3. Right Shoulder — Higher low, starts to rise
17	4. Neckline — Connect the two bounce highs
18
19	\| Criteria \| Requirement \|
20	\|----------\|-------------\|
21	\| Activity \| Compare right-shoulder volume with the left using a predeclared statistic \|
22	\| Symmetry \| Shoulders roughly equal height \|
23	\| Prior trend \| Must have existing trend to reverse \|
24
25	## Workflow
26
27	### 1. Get Exact Data
28
29	```
30	get_candles_around_date(symbol=<symbol>, exchange=<exchange>, interval=<interval>, date=<head_date>)
31	```
32
33	### 2. Mark Structure Points (3 parallel highlight calls)
34
35	```
36	draw_chart_analysis(action="create", drawing={
37	"type": "highlight",
38	"points": [{"time": <ls_time>, "price": <ls_price>}],
39	"options": {"text": "LS"}
40	})
41
42	draw_chart_analysis(action="create", drawing={
43	"type": "highlight",
44	"points": [{"time": <head_time>, "price": <head_price>}],
45	"options": {"text": "Head"}
46	})
47
48	draw_chart_analysis(action="create", drawing={
49	"type": "highlight",
50	"points": [{"time": <rs_time>, "price": <rs_price>}],
51	"options": {"text": "RS"}
52	})
53	```
54
55	### 3. Draw Neckline
56
57	```
58	draw_chart_analysis(action="create", drawing={
59	"type": "support",
60	"points": [
61	{"time": <neckline_left_time>, "price": <neckline_left_price>},
62	{"time": <neckline_right_time>, "price": <neckline_right_price>}
63	],
64	"options": {"text": "Neckline"}
65	})
66	```
67
68	For inverse H&S, use `"resistance"` instead of `"support"`.
69
70	### 4. Enter
71
72	Standard: Enter on neckline break + close with volume. Stop above right shoulder.
73	Preferred: Wait for neckline break, then retest. Enter on rejection. Tighter stop.
74	Target: Head-to-neckline distance projected from break point.
75
76	## Evidence and Validation
77
78	- Treat the setup as a testable hypothesis, not a prediction. Define thresholds, entry, invalidation, and exit before evaluating outcomes.
79	- Calibrate on the same instrument, venue, session, and timeframe. Use closed candles and a held-out or walk-forward sample; record every variant tried.
80	- Include spread, fees, slippage, borrow or funding, partial fills, and latency. Reject the setup when net expectancy is not positive or depends on one narrow parameter.
81	- Return observed inputs, missing data, cost assumptions, entry, invalidation, exit, and a valid, watch, or no-trade status.
82	- Research basis: [Lo, Mamaysky & Wang](https://www.nber.org/papers/w7613) studied algorithmic head-and-shoulders recognition and found conditional information in some samples, not a guaranteed reversal.
83
84	## Key Rules
85	- NEVER trade before neckline break — pattern incomplete until confirmed
86	- Volume differences are contextual and do not validate the pattern without a neckline break
87	- Must have a prior trend to reverse; H&S in a range is invalid
88	- Record shoulder-height asymmetry rather than assuming a lower right shoulder always increases expectancy
89
90	## Related Skills
91	- double-top-bottom — Similar reversal family
92	- multi-timeframe-analysis — HTF H&S signals major reversals

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6 picks

Type