Head & Shoulders

  • Usually forms in an uptrend
  • Composes of three bumps representing a left shoulder, the head, and a right shoulder with the head being the tallest among the three bumps
  • Has a neckline connecting bases of the left and right shoulder, which serves as a major support
  • Usually volume is greatest on the left shoulder then descends towards the right shoulder
  • Effect: A breach on the neckline can send the stock southwards until it reaches a considerable support
Head & Shoulders