Complex head and shoulders
A head and shoulders with two shoulders on each side, so there are five peaks and a flat line under the dips.
What it shows
This is a variant with extra shoulders. The head is still the highest peak. Two shoulders sit on each side, forming a wider, more balanced shape.
The same rules apply: the pattern is complete only when price closes below the neckline.
How we find it
The same code that draws it on your chart follows these steps, with the same result every time.
- Find a head swing high that is higher than at least 2 swing highs on each side.
- Require the shoulders on each side to be below the head and similar to their neighbors.
- Draw the neckline through the swing lows between the shoulders.
- Mark the pattern complete when a close falls below the neckline by more than the margin.
Starting values: Shoulders per side 2; Minimum head over shoulders 3% of price; Margin below neckline 1.0%. These are proposed and will be tuned on real price data before launch.
How to read it
- Red dots are the shoulders and the head.
- The blue line is the neckline.
- More points in the shape means the pattern took longer to form.
Status labels you may see
| Label | What it means |
|---|---|
| Forming | Shape found, neckline not broken. |
| Testing the neckline | Within 2% above the neckline. |
| Neckline broken | Close below the neckline. |
What cancels it
A close above the highest shoulder before the neckline breaks.
What traders check next
- Whether the shoulders on each side match.
- Time spent forming the pattern.
- Volume on the break.
Limits
- Rare and open to interpretation.
- More swing points means more ways to draw it.
- It often looks like a trading range instead.
Try it in forecastviz
- Open any ticker and choose Reversal patterns → Complex head and shoulders in the left menu.
- Switch between 1Y, 3Y to see how the picture changes.
- Compare with Head and shoulders and Inverse head and shoulders on the same chart.
Questions
How do I tell it from a range?
A head and shoulders has a clearly higher head. A range has peaks at about the same height.
Is it more reliable?
We do not claim that.
Related trends
Further reading
- Edwards and Magee, Technical Analysis of Stock Trends
- Bulkowski, Encyclopedia of Chart Patterns
- Murphy, Technical Analysis of the Financial Markets
Educational only. Not financial advice, and not a price forecast. Charts are drawn by code from past price data, which may be delayed.