What is a Head and Shoulder Pattern? Head and Shoulders Pattern Explained

What is a Head and Shoulder Pattern? Head and Shoulders Pattern Explained

The Head and Shoulder Pattern is one the most reliable reversal patterns and can be seen in an uptrend or a downtrend. It is one of a variety of popular patterns that, to different degrees, signal the end of an upward trend. The pattern appears as a baseline with three peaks, the center peak being the highest and the outside two peaks being relatively close in height.

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