A Head and Shoulders Pattern is a chart formation that resembles a baseline with three peaks,the outside two are close in height and the middle is highest
In TA this pattern it s essential to predict when a bullish trend will be changed to bearish
This Head and shoulders pattern appear when:
After long term bullish trend the price rises to a peak and after declined to form a trough
The price will rise again to form a second high peak and declines again
And third time the price rises also but only to the level of the first beak before declining once more
The first and third peaks are shoulders and the second peak which is upper(heighest) will form the head,in this case head and shoulders will appear
In TA this pattern it s essential to predict when a bullish trend will be changed to bearish
This Head and shoulders pattern appear when:
After long term bullish trend the price rises to a peak and after declined to form a trough
The price will rise again to form a second high peak and declines again
And third time the price rises also but only to the level of the first beak before declining once more
The first and third peaks are shoulders and the second peak which is upper(heighest) will form the head,in this case head and shoulders will appear