Head and shoulders

Head and shoulders - a figure of technical analysis, which graphically resembles a human bust, i.e. head and shoulders (hence the name).

On the graph this pattern represents three consecutive price rises: the first and third are at about the same levels, the central one shows a stronger rise. All three start from the same support line, the "neckline.

This figure is considered to be one of the most reliable, but the correct interpretation is important when using it. Using "Head & Shoulders" in his trading system, the trader expects a strong movement of large volume when the neck line is broken.

The pattern is universal. The time period for working with this pattern is not important.