Chart patterns › Head and shoulders

Head and Shoulders Pattern

The head and shoulders is a chart pattern of three peaks: a higher middle peak (the head) between two lower ones (the shoulders). It’s one of the best-known reversal patterns, and has an upside-down version for bottoms.

Head and shoulders chart pattern with neckline
Head and shoulders: left shoulder, head, right shoulder, then a break below the neckline.

How it forms

  1. Left shoulder: a rise to a peak, then a pullback.
  2. Head: a rise to a higher peak, then a pullback to around the same level as before.
  3. Right shoulder: a weaker rise to a peak lower than the head, then a decline.
  4. Neckline: the line connecting the two pullback lows. It can be flat or sloped.

The pattern is usually considered complete only when the price closes below the neckline. Until then it’s just three peaks.

The measured move

A traditional way to estimate a target is to measure the distance from the top of the head down to the neckline, then project that distance down from the point where the price breaks the neckline. It’s a rough guide, not a promise; price often falls short or overshoots.

Inverse head and shoulders

Inverse head and shoulders chart pattern
Inverse head and shoulders: three troughs, with a break above the neckline.

Turned upside down after a decline, the pattern has three troughs with the lowest in the middle. It’s confirmed when the price closes above the neckline.

Retests

After the break, the price sometimes comes back to the neckline before moving on. The old neckline can then act as resistance (or support, for the inverse pattern).

Drawing it on TradingView

Use the Trend Line tool (shortcut Alt + T) for necklines and wedge lines, the Parallel Channel tool for flags, and the Patterns group in the left toolbar, which includes a head and shoulders drawing tool. Practise on past charts with Bar Replay, and see all TradingView shortcuts.

No pattern is a guarantee. Patterns describe how buyers and sellers behaved; they don’t predict the next move on their own, and they fail often. Traders usually wait for confirmation, look at where the pattern forms (after a trend, at support or resistance), and decide their exit before they enter. Size the trade with the position size calculator.

Diagrams are illustrations drawn from example prices. Hollow candles closed higher than they opened; filled candles closed lower. ChartWatch doesn’t give trading advice.

FAQ

Is head and shoulders bullish or bearish?
The standard head and shoulders, which forms after a rise, is bearish. The inverse head and shoulders, which forms after a decline, is bullish.
When is a head and shoulders pattern confirmed?
When the price closes beyond the neckline: below it for a standard pattern, above it for an inverse one.
How do you find the target of a head and shoulders?
The traditional method measures from the head to the neckline and projects that distance from the breakout point. It's an estimate, not a guarantee.

More free TradingView tools

Chart PatternsHead and shoulders, double tops, flags and wedges explained. Double Top & BottomM and W reversal patterns explained. Support and ResistanceHow price levels act as floors and ceilings. Trend LinesHow to draw trend lines and channels correctly.
TradingView — the fastest way to follow markets
Watchlist BuilderAll GuidesWatchlist GuideTradingView PlansIndicatorsShortcutsBar ReplayAlert BuilderPine ColorsWatchlist CleanerCalculatorsWorld Market HoursForex HoursStock Market HoursMarket HolidaysFed Meeting DatesCPI & NFP DatesPosition Size CalculatorCandlestick PatternsChart PatternsChart ColorsSymbol FormatAboutPrivacyTermsContact

ChartWatch is an independent tool and is not affiliated with, endorsed by, or officially connected to TradingView, Inc. “TradingView” is a trademark of its respective owner. Exchange, broker and platform names are trademarks of their respective owners.