A technical pattern that often brings about erratic action until it is resolved. The pattern is formed by a large down move that is relatively one sided with little consolidation within it, followed by a lower high bounce that then retests the prior low, forming a lower case h. The h stands for “hell for shorts” as most traders mistakenly short the retest of the initial low and are then frustrated when prices fail to move lower. The pattern can exhibit on any timeframe but is most often viewed on dailies of major averages and index futures. The snapshot below is from a daily /ES in early 2022.
