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Head and Shoulders A chart pattern which is generally considered indicating price trend reversal in technical analysis. Resembling a human head with two shoulders, a head and shoulders pattern consists of a left and a right shoulder (two lower peaks), a head (a peak higher than both shoulders), and a neckline (the support level). Breaking of the neckline normally indicates trend reversal and thus a selling opportunity. This chart pattern is also referred to as a head and shoulders top. The upside-down formation of a head and shoulders top is called a head and shoulders bottom, inverse head and shoulders, or reverse head and shoulders.
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