Head and Shoulders

Also called: H&S, H and S

A three-peak reversal pattern: a high (left shoulder), a higher high (head), a lower high (right shoulder) — bearish signal.

The head-and-shoulders is one of the most reliable classical reversal patterns. The ‘neckline’ connects the lows between the three peaks; entry is on a break and close below the neckline; target is typically the height of the head projected down from the neckline.