Head and Shoulders (chart Pattern) - Characteristics

Characteristics

• Most of the time Head and Shoulders are not perfectly shaped. This formation is slightly tilted upward or downward.
• One shoulder may appear to droop.
• On many chart patterns, any one of the two shoulders may appear broader than the other which is caused by the time involved in the formation of the valleys.
• The neckline may not be perfectly horizontal; it may be ascending or descending.
• If the neckline is ascending then the only qualification of the formation lies in the fact that the lowest point of the right shoulder must be noticeably lower than the peak of the left shoulder.