Head and Shoulders
ChartBearishReversalReliability:
Three peaks with a higher middle peak (head) flanked by two lower peaks (shoulders); a break below the neckline marks a bearish reversal.
Description
Forms at the end of an uptrend. The neckline connects the two troughs between the peaks; the pattern activates when price closes below the neckline.
Market psychology
Each peak is an attempt at a new high; the failed right shoulder shows buyers are exhausted and control shifts to sellers.
How to trade
The measured target is often the head-to-neckline distance projected down from the break; wait for a close below the neckline as confirmation.
Confirmation
A decisive close below the neckline, ideally with rising volume on the break.
Also known as: H&S, HS top
Educational content only — not financial advice. Cryptorua reads public market data and never places orders.