The head and shoulders chart pattern is a popular and easy-to-spot pattern in technical analysis that shows a baseline with three peaks, the middle peak being the highest.
The pattern appears on all time frames and can, therefore, be used by all types of traders and investors. Entry levels, stop levels, and price targets make the formation easy to implement, as the chart pattern provides important and easily visible levels.
The head and shoulders pattern is believed to be one of the most reliable trend reversal patterns.
