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bearish Signal
Head and Shoulders
One of the most reliable reversal patterns, consisting of three peaks: a higher middle peak (head) and two lower peaks on either side (shoulders).
How to Trade
The pattern is complete when the price falls below the neckline connecting the lows of the two shoulders. This is a clear sell signal.
Market Psychology
The higher head shows one last burst of strength, but the lower right shoulder confirms that the uptrend is broken and lower highs are beginning.
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Ascending Triangle
Technical Diagram
This visual represents the ideal candle formation and breakout points for the Head and Shoulders pattern.