Charts
What is Head and Shoulders?
A chart pattern that often signals a trend reversal
Full Explanation
A head and shoulders pattern has three peaks — a smaller one (left shoulder), a higher one (head), and another smaller one (right shoulder). When the stock breaks below the neckline connecting the troughs, it's considered a bearish reversal signal.
Pro Tip
One of the most well-known reversal patterns. Traders watch the "neckline" closely.
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