Head And Shoulders Tops 

Following an upward trend the formation appears as three bumps, the center one being the tallest, resembling a bust. The two shoulders appear at about the same price level. Distance from the shoulders to the head is approximately the same. There can be wide variation in the formation’s appearance.

 
Example
graphic
 
Statistics
Percent of successful formations – 63%
Failure rate – 7%
Average time to throwback completion – 3 hours
 
Trading tactics
Compute the formation height by subtracting the lowest low from the highest high reached in the head. Subtract the result from the lowest low. The difference is the minimum target price.