Head-and-Shoulder Bottom

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In a head-and-shoulders pattern, one of two price bottoms. A head-and-shoulders pattern is an indicator in which the price of a security rises to a peak, falls, rises to a higher peak and then falls again, and, finally, rises to a third peak roughly equal to the first and falls again. While, in general, a head and shoulders pattern is considered a bearish indicator, the bottoms are bullish points because they occur immediately before the price rises. These bullish points are sometimes called the neckline.

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