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HEAD AND
SHOULDERS
A head and shoulders pattern is one that has
three peaks and looks like a head and shoulders
because the outer two peaks are similar in height,
but shorter than the middle peak. This pattern is
usually associated with a trend reversal from
BULLISH to bearish and is considered to be very
reliable in its ability to predict this type of stock
action. This model is one of many models used to
predict the end of a BULL RUN and the start of a
DOWNTURN.
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