The Head and Shoulders pattern is one of the most powerful and reliable trend reversal patterns in technical analysis. It’s like a warning sign that the current trend is losing steam and about to take a sharp turn in the opposite direction. Structure: Trading Strategy: The psychology behind this pattern shows a loss of momentum from buyers and the beginning of a trend reversal as a lower high forms. This pattern is very strong after a strong uptrend. The Head and Shoulders pattern is not just a random shape—it represents a fundamental shift in market sentiment. It forms because of buyer exhaustion and a shift in control from bulls to…