#Head-and-ShouldersPattern#
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A head and shoulders pattern is a chart formation that resembles a baseline with three peaks, the outside two are close in height and the middle is highest. In technical analysis, a head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal.
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How to Trade the Head and Shoulders Pattern
The head and shoulders chart pattern is a reversal pattern and most often seen in uptrends. Not only is “head and shoulders” known for trend reversals, but it’s also known for dandruff reversals as well. 😂 In this lesson, we’ll stick to talking about trend reversals and leave the topic of dandruff
Reading Charts— How to Identify and Trade “Double Tops”
The double top chart pattern is a reversal pattern. It can be seen in charts of almost all time frames. It often forms when price approaches a resistance level after an extended rise. There price stalls near the previous swing high and is poised to pull back. Some traders would try to get in here.
