Last November, July soybeans flashed a head and shoulders pattern. The left shoulder formed in early November, the head pushed to new highs in mid-November, and the right shoulder formed in early December where buyers failed at a lower high. The neckline is around 1130. The pattern does not verify until that neckline breaks, and you want to see volume confirming the move. Volume faded into the right shoulder and picked back up on the break below the neckline. To get a target, measure from the head to the neckline (about 50 cents) and project that below the break, targeting near 1080.

The analyst explains that most traders get it wrong by acting before the neckline breaks. The key signature is volume confirmation. The example shows beans finding their footing in mid-December at the target level.

Patterns like this show up in these markets all the time. You just have to know how to find them.