Head & Shoulders
Three peaks, a neckline, and a fading heartbeat.
The shape
Left shoulder, higher head, right shoulder about level with the left. The valleys between them draw the neckline. It is a double top with a middle attempt that overstayed its welcome.
Why it forms
Each rally after the head is weaker — buyers keep showing up with less money. The neckline break is the moment the market admits it.
The inverse twin
Upside-down after a downtrend: three troughs, a neckline across the peaks, and a break up as the buy trigger.
Quick check
The classic H&S entry is…
- A close below the neckline
- The top of the head
- The left shoulder high
- The first valley
The neckline is the verdict line. Everything before the break is a suspect lineup, not a conviction.
This lesson is part of the free learning path at /academy/ — progress, XP and boss games live there.
Educational content only — not financial advice.