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Head And Shoulders

The Head and Shoulders chart pattern is considered by many traders and analysts to be one of the most reliable and accurate of all reversal patterns.

The head and shoulders pattern reveals itself by a series of three highs with the Head represented as central high that is higher than the flanking peaks that form the shoulders.

The head and shoulders chart pattern essentially represents a rally to a new high, followed by a decline, then a marked uptrend forming the second, central high before a second decline and final rally that inevitably fails once again.

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