Head and Shoulders
ChartThe most famous bearish reversal pattern. Three peaks with middle peak (head) higher than two shoulders. Neckline break confirms.
Success Probability: 88%
Pattern Visualization
How to Identify
- Left shoulder forms and pulls back
- Head (higher peak) forms and pulls back
- Right shoulder (similar height to left) forms
- Breakdown below neckline confirms reversal
Trading Tips
Very reliable reversal. Short on neckline break. Stop above right shoulder. Target = neckline - head height.
The most famous bearish reversal pattern. Three peaks with middle peak (head) higher than two shoulders. Neckline break confirms.
Trading Strategy
Very reliable reversal. Short on neckline break. Stop above right shoulder. Target = neckline - head height.
How to Identify
- Left shoulder forms and pulls back
- Head (higher peak) forms and pulls back
- Right shoulder (similar height to left) forms
- Breakdown below neckline confirms reversal
Risk Management
With a 88% success probability, this pattern offers excellent reliability for trading decisions. Consider using larger position sizes within your risk parameters.