Head & Shoulders Top Pattern

Description

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

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