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Head and shoulders: On of the best known and more reliable trend reversal patterns. At a market top, three peaks are formed with the second peak (or head) slightly higher than the first and third peaks (the shoulders). When the supporting trendline (the neckline) connecting the two previous troughs is broken, the price pattern is complete. At a market bottom, three troughs are formed with the head being slightly lower than the shoulders and when the neckline (connected by the peaks) is broken, the price pattern is complete.

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