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.

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 ...

Like most patterns, the head and shoulders pattern represents what it looks like: two shoulders that frame a head. Here’s what it looks like on a chart: Price spike (shoulder) Higher price spike (head ...

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.

A so-called head-and-shoulders pattern, or head-and-shoulders reversal, describes when a charted security, in this case the S&P 500 , forms three successive peaks.

What Is a Head and Shoulders Pattern? A head and shoulders pattern is a chart formation used in technical analysis to indicate a security’s reversal in the. Skip to main content.

The Apple stock chart has traced the dreaded head-and-shoulders pattern. This is a well-known and well-followed reversal pattern in traditional technical analysis. As shown on the chart, the ...