Head and Shoulders Top

A Head and Shoulders pattern on the EUR/USD daily chart

A bearish reversal pattern defined by three prominent highs with a middle peak, (the head) that is higher than the other peaks (the shoulders). The neckline is drawn beneath the two price lows that separate the head from the shoulders. Downward penetration of the neckline is typically considered the sell entry signal.

See also:  Head and Shoulders Bottom