What Is Head and Shoulders?
The Head and Shoulders is one of the most reliable chart patterns in technical analysis. It consists of three peaks: a left shoulder, a higher head, and a lower right shoulder. A trendline (neckline) connects the troughs. The pattern confirms when price breaks below the neckline.
Win Rate
75%
Avg Move
Head-to-neckline distance
Best TF
Daily/Weekly
BearishChart FormationMany CandlesIntermediateVery High Reliability
Key Characteristics
- Three peaks with the middle (head) being highest
- Neckline connects the two troughs
- Right shoulder ideally lower than the left shoulder
- Volume typically decreases from left shoulder to right shoulder
- Confirmed on neckline break with volume
Learn More About Head and Shoulders
Dive deeper with our complete guide including formation rules, trading strategies, real examples, and interactive tools.