Head & Shoulders
Classic reversal pattern: three peaks (middle is highest).
Head & Shoulders forecasts the end of an uptrend: left shoulder (peak), head (higher peak), right shoulder (lower peak). The line through the lows is the neckline. Break below = short signal; target = head height subtracted from neckline. Inverse H&S is the same on a bottom - long signal. ~65-75% accurate with volume confirmation.
In plain words
Chart shows three humps: the middle is the biggest (head), the sides are smaller (shoulders). When price drops below the line through the lows between them, it's a strong reversal sign.
Example
BTC November 2021: shoulder 64k -> head 69k -> shoulder 67k -> neckline break 53k = bear to 15k.
Also known as: H&S, inverse head and shoulders