Head & Shoulders Practice
The head and shoulders is the most famous reversal pattern — three peaks with the middle one highest, breaking a neckline. Train to recognise it cleanly instead of seeing it everywhere.
A head and shoulders top has three peaks: a left shoulder, a higher head, and a right shoulder roughly level with the left. A line connecting the two intervening lows is the neckline; a close below it signals the reversal and projects a rough downside target equal to the head-to-neckline height.
How to spot it
- ✓ An uptrend precedes the pattern — it reverses something.
- ✓ Left shoulder, then a higher head, then a right shoulder near the left’s height.
- ✓ Connect the two lows between the peaks to draw the neckline.
- ✓ The signal is a decisive close below the neckline, not the third peak alone.
- ✓ The inverse pattern (three troughs) works the same way as a bottom.
⚠️ Common mistake
Calling the top before the neckline breaks. Three bumps are common in any chart; without the neckline break there is no pattern — only a shape.
FAQ
Do the shoulders need to be exactly equal?
No. Real patterns are messy — roughly symmetrical shoulders are fine. The neckline break is what confirms it, not perfect geometry.
How is the target estimated?
Measure the vertical distance from the head to the neckline and project it down from the break point. It is a rough guide, not a promise. This page is practice, not advice.