Head and Shoulders

Bullish Head and Shoulders  zoom »
When this trading pattern occurs the correct strategy is to wait for the neck line to be penetrated by the price. Subsequently a close below the neck line can be an excellent signal for a change in trend.

Bearish Head and Shoulders  zoom »
When this trading pattern occurs the correct strategy is to wait for the neck line to be penetrated by the price. A signal for a change in trend with the inverted (Up side down) head and shoulder pattern would be penetration and a subsequent close of price above the neck line.


Bullish Head and Shoulders




Bearish Head and Shoulders



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