3. Head and Shoulders Pattern

The Head and Shoulders pattern forms a distinctive peak (head) flanked by two lower peaks (shoulders). It’s widely used to indicate potential bearish reversals.

Key Features: 1-A central peak with two smaller peaks on either side. 2-Appears at the top of an uptrend, signaling a trend reversal.

Pros: 1-Strong signal for trend reversals. 2-Highly recognizable pattern.

Cons: 1-Requires confirmation with volume. 2-Less reliable in volatile markets.