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Head and shoulders

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Head And Shoulders Pattern Triggers On Dollar
The Market Financial  Apr 26  Comment 
The PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP) has a clear head and shoulders pattern on the daily chart. Head and shoulders patterns are bearish in nature and usually mean more downside for that particular chart. This pattern has...
EUR/CAD Inverted head and shoulders
FX Street  Apr 25  Comment 
EUR/CAD Inverted head and shoulders We see EUR/CAD forming an inverse head and shoulders on the 1H... For more information, read our latest forex news and reports.
EURUSD - Using Head and Shoulders to Trade a Head & Shoulders
FX Street  Apr 10  Comment 
For more information, read our latest forex news and reports.
Eur/Usd Daily Chart: Bearish Head and Shoulders Is Pointing Towards 1.26
FX Street  Apr 9  Comment 
Euro finally reversed lower and now pointing towards 1.2600 for coming weeks, as we are now even... For more information, read our latest forex news and reports.
EUR/USD – Inverted Head and Shoulders?
FX Street  Mar 23  Comment 
EUR/USD The head and shoulder pattern completed in the 3/22 US session did not follow through.... For more information, read our latest forex news and reports.
USD/CHF Completes an Inverted Head and Shoulders; in Throwback
FX Street  Mar 22  Comment 
USD/CHF When the EUR/USD forms a head and shoulders pattern , it should not surprise you that the... For more information, read our latest forex news and reports.
USD/ZAR has recently completed the Head and Shoulders chart pattern
FX Street  Feb 27  Comment 
USD/ZAR has recently completed the Head and Shoulders chart pattern identified by Autochartist on... For more information, read our latest forex news and reports.
CHART OF THE DAY: The Mother Of All Head And Shoulders
Clusterstock  Jan 30  Comment 
Reader Josh Clark writes in to protest our discussion of the S&P "Golden Cross." For technical analysis to have any use, it can't just be based on moving averages which any old computer could identify, but rather it requires human...
USDollar Inverse Head and Shoulders Supports Price Over 9900
Daily FX  Jan 19  Comment 
Can the USDollar be supported over 9,900 by an Inverse charting pattern ?




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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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