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#Teaching
Head and Shoulders Pattern
This classic pattern signals the end of a trend, usually appearing when the price fails to form higher highs. Its structure includes the left shoulder (a high point), followed by the head (a higher high), and then the right shoulder (lower than the previous high).
Breaking below the neckline (the key support level below the "Head and Shoulders" structure) can serve as a trigger for entering a trade. The inverse "Inverse Head and Shoulders" pattern indicates the end of a downtrend.