Technical Analysis

Head and Shoulders Pattern

Definition

A bearish reversal chart pattern resembling a head with two shoulders, signaling the end of an uptrend.

Example
A completed head and shoulders top often leads to a significant price decline.
Related Terms
Double Top Elliott Wave Theory Support and Resistance
Frequently Asked Question
What is the Head and Shoulders Pattern?
The Head and Shoulders Pattern is a bearish reversal chart pattern with three peaks — a higher center peak (head) flanked by two lower peaks (shoulders). Breaking the neckline confirms the pattern and often leads to a significant decline.
APA Citation
Clark, R. (2025). Head and Shoulders Pattern. VixShield Trading Glossary. Retrieved from https://www.vixshield.com/glossary/head-and-shoulders-pattern
RC
Russell Clark, FNP-C
Author of SPX Mastery series · Founder of VixShield
Last updated:  ·  Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.