Head and Shoulders

One of the most recognized chart patterns in technical analysis, consisting of three peaks where the middle peak (the head) is higher than the two flanking peaks (the shoulders). A "neckline" connects the troughs between the peaks, and a break below it signals a bearish reversal. The pattern works in reverse as an "inverse head and shoulders" at market bottoms. Studies suggest it is among the more statistically reliable classic chart patterns, though no pattern works every time.