Head and Shoulders Pattern

Head and Shoulders The head and shoulder formation is the best indication for a trend change. The head and shoulder reversal pattern forms at the end of an uptrend, and its completion marks a trend reversal.

Head and Shoulders The left shoulder is formed after an extensive increase in price, usually supported by high volume. Left Shoulder

Head and Shoulders The head is formed with heavy volume on the rising side of the head, and lower volume on the falling side. Head

Head and Shoulders The right shoulder is formed by a rally in the price to a level roughly equal to that of the left shoulder. Right Shoulder

Head and Shoulders The neckline can be drawn by connecting both the lower points of left and right shoulders. The neckline can slope up, slope down, or even be horizontal. Neckline