<div id="readability-page-1"><p>The Head and Shoulders pattern is an important pattern that is frequently used in technical analysis and signals a potential trend change in the market. The head and shoulders pattern appears at the end of an uptrend. This pattern consists of three peaks that form in sequence. The first and third peaks are called the ‘shoulders’, while the highest peak in the middle is called the ‘head’. The formation appears at the end of an uptrend and gives us signals that the price may reverse.</p><h3><strong>How is the Head and Shoulders Pattern formed?</strong></h3><p>The Head and Shoulders pattern consists of the left shoulder, head and right shoulder.</p></div>

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<p>The Head and Shoulders pattern is a key technical analysis tool indicating a potential market trend reversal. It typically forms at the end of an uptrend, consisting of three peaks: two shoulders and a head. This pattern signals that the price may reverse, making it crucial for traders to recognize.</p>

Powerful Reversal Pattern: Mastering the Head & Shoulders Pattern- Trusted by FBS Analysts