Head and Shoulders
The pattern resembles a human head with two shoulders on either side. Understanding the basic characteristics of the Head and Shoulders pattern is essential for traders looking to identify potential trading opportunities.
Basic chart
![Basic chart](https://storage.googleapis.com/stormie-portfolio-bucket/media/image/chart_pattern_2/head_and_shoulder_1-20230705231414.png)
Formed after an uptrend and indicates a possible shift from bullish to bearish sentiment in the market. The pattern resembles a human head with two shoulders on either side
In-complete head and shoulders
![In-complete head and shoulders](https://storage.googleapis.com/stormie-portfolio-bucket/media/image/chart_pattern_2/HSfailedneck-20230705232511.png)
A head and shoulders pattern is not complete until the neckline is broken.
Target and stop-loss
![Target and stop-loss](https://storage.googleapis.com/stormie-portfolio-bucket/media/image/chart_pattern_2/Head-and-Shoulders-Trading-detail-20230705234056.png)
The projected target is often calculated by measuring the vertical distance from the head to the neckline and subtracting it from the breakout point.