head-and-shoulders

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Head-and-shoulders is a classic chart pattern, which forms as the end of an uptrend and looks like a plateau (left shoulder) followed by a peak (head) and then by another plateau (right shoulder) on the same level as the former. For a head-and-shoulders to count as valid, both shoulders should be of roughly the same size. Head-and-shoulders is a reversal pattern, with a bearish breakout below the neckline (which, despite its name, runs through the pattner’s “armpits”) providing a tradable sell signal.

An inverted head-and-shoulder looks like the opposite of the pattern described above and can be traded in case of a bullish breakout if it is formed at the end of the downtrend.

The posts below show examples of both normal and inverted head-and-shoulders formations in Forex.

2018

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2015

2013

2012