What does a Head and Shoulder Pattern look like.  The importance of the Head and Shoulders pattern should not be under-estimated.  One of the most reliable patterns in technical analysis yet one of the most misunderstood.

Here we discuss the famous Head and Shoulders price pattern. Understood to be one of the most predictive & reliable of patterns the Head and Shoulders pattern has some unique characteristics. However you do need to know what you are looking for.

A Head & Shoulders Pattern has the following traits.

1. two shoulders.
2. a high point, the head, in between the shoulders.
3. the volume should confirm the pattern. Read More→