Head and Shoulders
A head and shoulders is a technical-analysis chart pattern consisting of three peaks: a middle peak (the head) higher than the two outer peaks (the shoulders). The pattern is identified with a neckline drawn through the lows and is considered a potential reversal signal when price breaks that neckline.
Example: On a daily chart, a price series forms a left shoulder, a higher head, and a right shoulder, followed by a break through the neckline. A technician notes the pattern as a potential reversal signal in the chart context.
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