Head And Shoulders Pattern

Dictionary Says

Definition of 'Head And Shoulders Pattern'

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

Investopedia explains 'Head And Shoulders Pattern'

The "head-and-shoulders" pattern is believed to be one of the most reliable trend-reversal patterns.

Video Definition


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'Head And Shoulders Pattern'

  • How To Trade The Head And Shoulders Pattern

    http://www.investopedia.com/articles/technical/121201.asp
    ... How To Trade The Head And Shoulders Pattern. ...
  • What Is The Head And Shoulders Pattern?

    http://www.investopedia.com/video/play/what-is-the-head-and-shoulders-pattern
    The head and shoulders chart pattern is a popular and easy-to-spot pattern -
    once a trader is aware of what they are watching for. ...
  • Analyzing Chart Patterns: Head And Shoulders | Investopedia

    http://www.investopedia.com/university/charts/charts2.asp
    ... There are two versions of the head-and-shoulders pattern. ... The head and shoulders
    pattern is based on Dow Theory's peak-and-trough analysis. ...
  • Most Commonly Used Forex Chart Patterns

    http://www.investopedia.com/articles/forex/11/most-used-forex-patterns.asp
    ... (For more on the Head and Shoulder pattern, see Price Patterns Part 2:
    Head-And-Shoulders Pattern.) Triangles Triangles are very common, especially on ...
  • Where do I place my target when the price of a stock breaks out of ...

    http://www.investopedia.com/ask/answers/06/chartpatterntarget.asp
    ... You can also use the height of the pattern to calculate the target on patterns that
    predict a downward trend, such as a head and shoulders pattern; the only ...
  • Tales From The Trenches: Don't Count On Luck

    http://www.investopedia.com/articles/trading/07/sticktostrategy.asp
    ... Trade Recap On March 16, 2006, ChartAdvisor.com identified a potential inverse head
    and shoulders pattern forming on the chart of Cosi Inc. (COSI). ...
  • What To Do When Trades Go Bad

    http://www.investopedia.com/video/play/moneyshow-trades-fail
    ... Related Videos. What Is The Head And Shoulders Pattern? The head and shoulders chart
    pattern is a popular and easy-to-spot pattern - once a ... Read More ยป; ...
  • Technical Analysis: Chart Patterns | Investopedia

    http://www.investopedia.com/university/technical/techanalysis8.asp
    ... As you can see in Figure 1, there are two versions of the head and shoulders
    chart pattern. Head and shoulders top (shown on the ...
  • Introduction To Technical Analysis Price Patterns

    http://www.investopedia.com/articles/technical/112601.asp
    ... An uptrend that is interrupted by a head and shoulders top pattern may experience
    a trend reversal, resulting in a downtrend. Conversely ...
  • Series 7 Study Guide - Portfolio Management - Technical Analysis ...

    http://www.investopedia.com/exam-guide/series-7/portfolio-management/technical-analysis.asp
    ... Take a closer look at the head and shoulders pattern, how to spot it and when to
    buy in the article Price Patterns - Part 2. Breakout Technicians have an old ...

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