Head & Shoulders Bottom Pattern

Description

The Head & Shoulders Bottom pattern is the equivalent of the Three Buddha Bottom candlestick pattern. It is formed over many candles with three lows being formed. First prices work down to a low and then retreat. Then prices work down to a lower low before retreating. Finally prices work back down to a low, but higher than the low that was achieved before. This occurs as price has been moving down, and is indicative of the bears running out of steam, and is a bullish reversal pattern.

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