Technical Analysis | Classic Reversal Pattern: "Head and Shoulders Pattern"

Hello everyone! Today I’d like to share a classic concept from the field of technical analysis—the "Head and Shoulders Pattern." It is commonly used to analyze potential changes in market trends and is for learning and discussion purposes only. 💡

【What is the Head and Shoulders Pattern?】
It is a pattern that may appear on price charts, named for its resemblance to a person’s head and two shoulders.
Head and Shoulders Top: Sometimes appears after an uptrend.
Head and Shoulders Bottom (Inverse): Sometimes appears after a downtrend.

【How to Identify This Pattern?】
It mainly consists of four parts:
Left Shoulder: Formed after a price rise/fall, followed by a pullback.
Head: Price rises/falls again, creating a new high/low higher/lower than the left shoulder, then pulls back/rebounds.
Right Shoulder: Third rise/fall, but fails to break the high/low of the head.
Neckline: A key benchmark line connecting the low/high points of the left shoulder and head's pullback/rebound.

【Very Important Notes】
Technical analysis is not an exact science; any pattern may fail or produce “false signals.”
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