Dictionary of Business Terms: head and shoulders
head and shoulders
in a chart of market prices, patterns resembling the head and shoulders outline of a person. The pattern signals the reversal of a trend. As prices move down to the right shoulder, a head and shoulders top is formed, meaning that prices should be falling.
Dictionary of Finance and Investment Terms: head and shoulders
head and shoulders
patterns resembling the head and shoulders outline of a person, which is used to chart stock price trends. The pattern signals the reversal of a trend. As prices move down to the right shoulder, a head and shoulders top is formed, meaning that prices should be falling. A reverse head and shoulders pattern has the head at the bottom of the chart, meaning that prices should be rising. See chart on next page.
