Head and Shoulders Pattern

Head and Shoulders Pattern gets its name because the pattern resembles a head with two shoulders on either side. The first shoulder is created as prices make higher highs and higher lows. As this trend loses momentum, prices retrace to the neckline and then begin to trend up farther than the first shoulder creating the head. Prices then retrace to the neckline and then the first shoulder pattern is repeated to create the second shoulder.

Head and Shoulders	Inverse Head and Shoulders