Head and Shoulders Pattern
Also called: head and shoulders, inverse head and shoulders
The head and shoulders is a three-peak reversal pattern with a higher middle peak, where breaking the neckline connecting the troughs is read as confirmation of a downtrend. It's the most famous formation in charting. Studies testing it systematically find results ranging from mildly positive to indistinguishable from noise, which is roughly the record of named chart patterns generally.