The head and shoulders candlestick pattern is a What is a trend reversal? A trend reversal is when the mark... More pattern that occurs after an What are uptrends in trading? When the price of an asset o... More in the What are value stocks? A value company is a company that app... More.
The The head and shoulders candlestick pattern is a reversal pat... More can be identified by two peaks of approximately the same level (representing the shoulders), with a third, higher peak in between them representing the head. Once this pattern occurs, the is generally considered to be over and the What is price? The price is the measure of the value of good... More is expected to fall.
You will generally findat the bottom of the head (which is called the neckline) and at the bottom of the shoulders. It is said that once the neckline is broken, the price will drop by the same amount as the distance from the head to the neckline.
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