// TRADING TERMINOLOGY
What is Head and Shoulders?
A reversal pattern consisting of a large peak (the head) between two smaller peaks (the shoulders).
In-Depth Explanation
A break below the "neckline" (the support level connecting the lows) confirms the pattern and suggests a major trend reversal from bullish to bearish.
Practical Example
"The S&P 500 completed a head and shoulders pattern, signaling the end of the summer rally."
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