Trading Head and Shoulders Reversals
8/01/2017 8.45am
Trading Head and Shoulders Reversals (August 2017)
One of the most popular chart patterns in market analysis is "Head and Shoulders" (H&S) pattern. The H&S patterns form near market tops in an established sideways to up trending or bullish markets. The H&S patterns are reversal patterns as they reverse its prior uptrend and follow a bearish or downtrend from its breakdown. These patterns are signified by three successive peaks (tops) resembling two shoulders on both sides and a head in the middle. The head is the largest of the three peaks.