When you have identified a head and shoulders pattern on a stock such as Coca Cola, it is important to wait for a pullback before entering a trade. This is because the pullback will provide a better entry point, as it will be at a lower price than the breakout point. Additionally, waiting for the pullback will give you confirmation that the head and shoulders pattern is valid, as the pullback should be followed by a continuation of the trend in the direction of the breakout.
