Head And Shoulders Pattern

What does it Mean? A technical analysis term used to describe a chart formation in which a stock's price:

1. Rises to a peak and subsequently declines.
2. Then, the price rises above the former peak and again declines.
3. And finally, rises again, but not to the second peak, and declines once more.

The first and third peaks are shoulders, and the second peak forms the head.

Head And Shoulders Pattern
Investopedia Says... The "head-and-shoulders" pattern is believed to be one of the most reliable trend-reversal patterns.

Terms Related Links

Bearish
Cup and Handle
Inverse Head And Shoulders
Neckline
Technical Analysis
Throwback
Triple Top

Terms Related Links
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