NYSE S&P 500 NASDAQ Russell 2000

Reversal - Head and Shoulders

Head and shoulders chart patterns consist of a peak or shoulder, followed by a higher peak, the head, then completed by another lower peak with a break below the neckline of the shoulders.

The following is an example of a head and shoulders on Ford. Notice the move after the break of the neckline.

 

Head and Shoulders

 

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