• The Head and Shoulders pattern is a technical indicator with a graphical pattern of three peaks, where the two extremes are close in height, and the middle one is the highest.

  • Considered one of the most reliable trend reversal patterns, the Head and Shoulders pattern is a chart pattern that predicts a bullish to bearish trend reversal.
  • An inverted head and shoulders pattern predicts a bearish trend.
  • The neck line rests on the support or resistance lines, depending on the direction of the figure.