31 · HEAD & SHOULDERS

Three bumps, one verdict

The Family

• Head and Shoulders Top — left shoulder, higher head, lower right shoulder, confirmed by a neckline break.
• INVERSE HEAD & SHOULDERS the mirror at a bottom (next lesson).
• The Failed Break — a neckline break that reverses back above it — invalidated.
• Complex H&s — two heads, or two shoulders on one side — rarer, reads the same way.

How to Read It

• ANATOMY — three peaks, the middle one clearly highest, shoulders roughly matching.
• NECKLINE — connect the two troughs on either side of the head.
• CONFIRMATION — only a real close below the neckline validates the pattern.
• TARGET — head-to-neckline distance, projected down from the break — a rough zone, not a promise.

The One Rule

The shape asks the question. Only a confirmed close below the neckline answers it.

Educational content on classic market theory — not trading advice.