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Head and Shoulders
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The head and shoulders pattern is found in candlestick, point and figure, and chart patterns and is considered one of the most reliable reversal patterns.
The price forms a high on column one, followed by a period of consolidation. A second high is created followed by another period of consolidation, the right shoulder is then formed followed by a sell off. High volume should be seen on the last downward move.
Parralel support and resistance lines can be drawn as well as a visible neckline.
The height of the highest high should give a projection of the drop of the final downward move.
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