How Does Standard Head and Shoulders Pattern Work?
The head and shoulders pattern (also known as head and shoulders top) is a trend reversal chart pattern found after an uptrend or downtrend. There are two types of head and shoulders pattern: a standard head and shoulders pattern and an inverse head and shoulders pattern.

The standard pattern indicates a possible downward move after an uptrend, whilst the inverse head and shoulders pattern signifies a potential upward move after a downtrend. This lesson covers the standard pattern and shows you two ways to use it to look for possible selling opportunities.

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