Chart Patterns
Dukascopy Bank SA


Dukascopy Bank SA
Managed Forex Accounts
Choose from a multitude of forex traders. More
Featured Forex Brokers
Open a free demo or live account with a featured forex broker. More
Copy the trades of expert traders automatically on your own account. More

Head and Shoulders

The Head and Shoulders is a bearish chart pattern that indicates a probable downward trend after an upward trend.

Visual Pattern

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.

Reducing Risk

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.

More Chart Patterns:


ZuluTrade Alpha Judge
Trading Services Reviews

Bookmark this page

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

©2004-2013 GoForex. All Rights Reserved. *Disclaimer | GCI Financial Warning!