Community Forex Questions
What happens after the head and shoulders pattern completes?
On a longer time scale, the head and shoulders pattern usually indicates a reversal. As a result, after the pattern has played out and followed through, it is possible that it will continue to trend in the direction of the follow-through. An inverse head-and-shoulders pattern, for example, can indicate the bottom of a crash before the price resumes its upward trend. A regular head-and-shoulders pattern, on the other hand, can signal the end of a bull market before the start of a bear market.

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