The Bearish Head and Shoulders pattern is a well-known technical analysis formation that signals a potential trend reversal from bullish to bearish. It features three peaks: the left shoulder, a higher peak known as the head, and a lower peak called the right shoulder. The formation is complete when the price breaks below the neckline, a support level drawn through the lows between the shoulders and the head. This breakdown suggests that selling pressure is increasing, and a downtrend may follow. Traders often use this pattern as a cue to exit long positions or prepare for possible short-selling opportunities.
