Head and shoulders is a chart pattern in which a large peak has a slightly smaller peak on either side of it.
What its used for/ to predict a bullish-to-bearish reversal.
What to look for/ the first and third peak will be smaller than the second, but they will all fall back to the same level of support, otherwise known as the ‘neckline’. Once the third peak has fallen back to the level of support, it is likely that it will breakout into a bearish downtrend.
