The head and shoulders chart pattern is also a great chart pattern to help in trading. The head and shoulders chart pattern is a reversal pattern that usually forms in an uptrend in the market.
Pattern Formation
This pattern is formed as follows.
- First, a shoulder is formed on the left side
- Then a candlestick shoulder pattern with a higher peak is formed
- And then a shoulder is formed on the right side.
(As shown in the image below)
