Definition
A head and shoulders pattern is used in technical analysis. It is a specific chart formation that predicts a bullish-to-bearish trend reversal. The pattern appears as a baseline with three peaks, where the outside two are close in height, and the middle is highest. The head and shoulders pattern forms when a stock's price rises to a peak and then declines back to the base of the prior up-move. The
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In the Panel Profits market platform, What Is a Head and Shoulders Chart Pattern in Technical Analysis? applies standard financial concepts principles to comic assets and physical collections.
Common mistakes
Do not infer unobserved prices.