The most important of the chart patterns is a head and shoulder pattern; it is a bearish reversal pattern. This pattern provides an entry point and a stop loss; the take prot is calculated as a multiplier of stop loss. Its distinctive left shoulder identies the pattern and a head followed by the right shoulder. The neckline is another critical component of the head and shoulder pattern,neckline is drawn connecting the base of the shoulders and the head. The pattern is completed once the left shoulder, head, and right shoulder are
formed, followed by the neckline break.The neckline break by the price is considered the best entry point, the stoploss can be placed on the high of the right shoulder, while the take profit can be calculated at a 1:2 .
