A head and shoulders pattern is a chart formation used in technical analysis to predict potential reversals in price trends. It is named after its visual resemblance to a head and two shoulders. The pattern is typically formed after an uptrend and is considered a bearish reversal pattern. The formation includes three crest points with the two side crests (shoulders) even and the middle point (head) sitting higher. Investors consider the head and shoulders chart to be one of the more reliable patterns.