What is a bearish head and shoulder pattern?

The bearish head and shoulder pattern is a famous classical charting formation in technical analysis that appears at the end of an uptrend and signals that the previous trend may come to an end. Forex traders often use it as an indicator to enter a short-selling position or exit a long-position trade.

What is a head and Shoulders pattern?

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.

What is a head and shoulders chart?

Head and shoulders is a chart pattern that's used by technical analysts. It has a baseline with three peaks. The two on the outside are similar in height. The third appears in the middle and is the highest. It signals that there's a trend reversal from a bullish to a bearish cycle where an upward trend is about to end.