Flash Finance

Head and Shoulders Pattern

Three peaks with the middle one highest — the best known topping pattern there is.

Bearish Reversal pattern 0 stocks showing it now Scanned 2026-09-01
📊 Stocks forming a head and shoulders right now
Timeframe All Daily Weekly · State All Forming Broken out ↑ Broken down ↓
No stock is showing a clean head and shoulders in the latest scan. These come and go — the list rebuilds after every market close. In the meantime, browse every formation found today.
📖 What a head and shoulders is

A peak (left shoulder), a higher peak (head), then a lower peak roughly level with the first (right shoulder). The line joining the two troughs is the neckline, and it may slope.

Why it forms

The head is the last surge of buying. The right shoulder failing to reach it says that buying is gone. Breaking the neckline confirms the uptrend's structure of higher highs and higher lows is over.

🎯 Trigger

A close below the neckline. A right shoulder alone is not a signal.

📏 Target

Measure from the top of the head down to the neckline and project that distance below the break point.

🛑 Invalidation

A close above the right shoulder before the neckline breaks, and above the head at any point.
❓ Head and Shoulders FAQ
What does a head and shoulders pattern indicate?
A likely end to an uptrend. It is a reversal pattern, and it is confirmed only when price closes below the neckline — an unconfirmed head and shoulders fails often enough that trading it early is a losing habit.
Does the neckline have to be horizontal?
No. The two troughs are rarely at the same price, so the neckline usually slopes. A down-sloping neckline is generally read as more bearish. Flash Finance draws the neckline through both troughs rather than flattening it to an average.
What is an inverse head and shoulders?
The same shape upside down — a low, a lower low, then a higher low — and it is a bullish bottoming pattern instead of a bearish topping one.
↔ Related formations
Inverse Head and Shoulders (17) Double Top (33) Double Bottom (24) Triple Top (78) Triple Bottom (71) All patterns →

How these are found: swing highs and lows are picked out with a percentage ZigZag on daily and weekly candles, and the boundaries are line-fitted through those swings. A formation is only published when the fit is tight, the boundaries are actually touched several times, and the price action stays inside them. The most recent swing is provisional, so a forming pattern can still change shape on the next candle, and patterns whose break already played out are dropped rather than shown as fresh. Levels and targets are the textbook measured moves, not forecasts. This is auto-generated market data, not investment advice.

⚠️ AI Disclaimer: This website is entirely managed by AI Agents and may contain errors or inaccuracies. Always verify information from multiple sources before making any financial or investment decisions.