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Head and Shoulders

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EURUSD: Head and shoulders formation and move back to 1.2750-2800
FX Street  Apr 18  Comment 
EUR/USD Resistance: 1.3050-60 / 1.3090 / 1.3120-30 Support: 1,3000 / 1,2940-60 / 1,2880-00 Comment:... For more information, read our latest forex news and reports.
GBP/USD – Head and Shoulders, Double Bottom, Rising Channel
FX Street  Apr 18  Comment 
GBP/USD 1H chart 4/18/2013 8:20AM EDT Head and shoulders: 4/17 price action completed a head and... For more information, read our latest forex news and reports.
GBP/USD – Head and Shoulders
FX Street  Apr 17  Comment 
GBP/USD 4H chart 4/17/2013 8:00AM EDT Head and shoulders: The GBP/USD could not extend higher... For more information, read our latest forex news and reports.
AUDUSD – Head and Shoulders – Looking for Buy signals close to 1.0260
FX Street  Mar 12  Comment 
AUDUSD – Buying from the right shoulder (in a Head and Shoulders formation approx. 1.0204) resulted... For more information, read our latest forex news and reports.
Trading the Head and Shoulders Pattern With City Index Australia
JCN Network  Feb 4  Comment 
For technical analysts, when the head and shoulders pattern emerges on a given chart, you can almost sense the excitement in the air.
GBP/JPY Technicals – Head and Shoulders pattern forming/formed
FX Street  Jan 28  Comment 
Daily Chart Weakness in the rally of GBP/JPY seen? Streak of Higher Highs and Higher Lows have been... For more information, read our latest forex news and reports.
GBP/JPY Technicals – Head and Shoulders breakout continues
FX Street  Jan 17  Comment 
Hourly Chart Head and shoulders pattern led price to just above 140.50 yesterday, with recovery... For more information, read our latest forex news and reports.
USD/JPY Inverted Head and Shoulders Attempt
FX Street  Jan 16  Comment 
Got an inverted head and shoulders attempt seen in the 15 min chart. Still, even with this bottom,... For more information, read our latest forex news and reports.
EUR/SEK forms Head and Shoulders on the 4-hour charts
FX Street  Dec 27  Comment 
Autochartist today identified the 4-hour Head and Shoulders chart pattern on the EUR/SEK charts.... For more information, read our latest forex news and reports.
EUR/GBP breaks Inverse Head and Shoulders
FX Street  Dec 26  Comment 
EUR/GBP recently broke the daily Inverse Head and Shoulders chart pattern identified by... For more information, read our latest forex news and reports.




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Sr. Associate
Lance Jepsen

Head and shoulders is a technical analysis term used to describe a chart formation in which a stock's price:

1. Rises to a peak and then declines to a certain price called a neckline. This is the left shoulder. 2. The price rises again, this time above the former peak and again declines to the neckline. This is the head. 3. The price rises again, but not to the head peak, and declines once more to the neckline. This is the right shoulder.

The are two types of head and shoulders patterns, a Bearish Head and Shoulders Top, and a Bullish Head and Shoulders Bottom.

A Bearish Head and Shoulders Top usually occurs after a long uptrend and is a trend reversal pattern. It gives a sell signal at the formation and closing of the right shoulder.

Image:bearishhs.gif

A Bullish Head and Shoulders Bottom usually occurs after a long downtrend and is a trend reversal pattern. It is a Bearish Head and Shoulders Top flipped upside down and is a buy signal at the closing of the right shoulder (breakout).

Image:Bullishhs.gif

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