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HEAD AND SHOULDERS

Three peaks where the middle one is the highest, and a neckline is formed below.

Published by The Retail Trader · JUL 31, 2026 · Price Action

Head and Shoulders — three peaks where the middle one is the highest, and a neckline is formed below.

WHERE THIS FITS IN

This term comes under Price Action, in the section "LARGE CHART PATTERNS". Several candles together make shapes which have their own names:

RELATED TERMS TO READ

Other terms in this group — understanding them together is more useful:
• Double Top
• Double Bottom
• Triangle
• Flag / Pennant
• Wedge
• Cup and Handle
• Rectangle / Range

To read the entire group and all its examples in one place, see the journal "PRICE ACTION: THE LANGUAGE OF THE CANDLE" - this term is taken from there.

This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.

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