Head and Shoulders
Thischart design is regarded by several dealers and analysts to become one of the reliable and perfect of all the reversal patterns. This design discloses itself by the sequence of three different highs with Head characterized as main which is higher when compared to flanking peaks which in turn forms the shoulders. The design of head and shoulder represents rallyto the high, followed by the decline, than a marked uptrend creating the central and second high prior to the second failureand lastrally thatfails inevitably again. Generally, this chart design takes nearly three months to develop fully, although it can be importantly longer.