# Head and Shoulders Pattern

*Trading & Technical Analysis — Finicade finance glossary*

The head and shoulders is a three-peak reversal pattern with a higher middle peak, where breaking the neckline is read as confirming a downtrend.

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.

**Also known as:** head and shoulders, inverse head and shoulders

**Related terms:** [Chart Patterns](https://finicade.com/glossary/chart-patterns), [Support and Resistance](https://finicade.com/glossary/support-and-resistance), [Breakout](https://finicade.com/glossary/breakout), [Technical Analysis](https://finicade.com/glossary/technical-analysis), [Double Top](https://finicade.com/glossary/double-top)

Source: https://finicade.com/glossary/head-and-shoulders-pattern