The Head and Shoulders strategy is a technical indicator with a chart pattern associated by three peaks, it can be used to identify bullish-to-bearish trend reversals.
1. Following a sustained bullish period, the price rises to a peak, before a subsequent decline which forms a trough.
2. The price rises again to form a second high substantially above the initial peak and declines again.
3. The price rises a third time, but only to the level of the first peak, before declining once more.
