Technical Analysis Head & Shoulder Pattern

Head & Shoulder Pattern is an Up Trend Reversal Pattern. Hence the assumption is there already exists an Up Trend. Head & Shoulder Pattern can be explained as follows

1. Price 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.



Other Reversal Patterns

Technical Analysis Inverse Head & Shoulder

Technical Analysis Triple Top

Technical Analysis Triple Bottom

Technical Analysis Double Top

Technical Analysis Double Bottom