Head and shoulders is the name given to a pattern that can signal a reversal for a currency pair. It is identified by a pattern having 3 peaks: a head in the middle as the highest or lowest, and a lower or higher peak at each side as the shoulders.

A technical analysis term used to describe a chart formation in which a stock's price: 1. Rises to a peak and subsequently declines. 2. Then, the price rises above the former peak and again declines. 3. And finally, rises again, but not to the second peak, and declines once more. The first and third peaks are shoulders, and the second peak forms the head.