Head and Shoulders
The Head and Shoulders is a bearish chart pattern that indicates a probable downward trend after an upward trend.
The pattern consists of:
The Left Shoulder, that creates the first peak.
The Head, that creates the second and highest/biggest peak.
The Right Shoulder, that creates the third and last peak.
After the third peak it is likely that price will move in a downward trend. This gives you a Short Sell signal.
You can reduce risk trading the Head and Shoulders pattern by looking at the downward slope that the low points between the three peaks have created.