Head and Shoulders Pattern
The head and shoulders pattern is a reversal pattern that usually appears at the end of an uptrend.- *Head*: A new price rise that exceeds the previous peak, then a decline.This pattern indicates that the uptrend may be coming to an end and that there is a possibility of a downtrend reversal.It consists of three peaks: the middle peak (the head) is higher than the two side peaks (the shoulders).