A head and shoulders pattern on a stock chart includes three peaks with the middle being the highest. It’s been a reliable indicator of a coming bull-to-bear reversal. Learn more.

A head and shoulders pattern is an indicator that appears on a chart as a set of three peaks or troughs, ... Candlestick Chart: Definition and the Basics . How to Spot Key Stock Chart Patterns.

For the head of the inverse head and shoulders chart pattern, ... Finally some candlestick chart patterns include the doji, hammer or hanging man and the bullish and bearish engulfing patterns.

Head and shoulders is the most reliable chart pattern, reaching its projected target almost 85% of the time. It is a reversal pattern, meaning it signals the potential turnaround of the market.

Candlestick charts are often color-coded green or red to boot to indicate gains or losses. ... The head and shoulders pattern might be the most popular stock chart pattern in technical analysis.

Inverse Head and Shoulders Pattern: A Complete Trading Guide What is head and shoulders chart pattern? The inverse head and shoulders pattern is a powerful technical analysis tool that can help ...

Bullish: The bullish head and shoulders bottom chart pattern has 3 troughs where the central low point or head is the lowest, while the other 2 shoulders fall to roughly equal levels.

Several things stand out about this chart. First, the head and shoulders pattern is relatively clear, with a horizontal neckline. It occurs over a lengthy period -- almost an entire year.

Several things stand out about this chart. First, the head and shoulders pattern is relatively clear, with a horizontal neckline. It occurs over a lengthy period — almost an entire year.