Page 4 - Module & Head and Shoulders

Module 7 – Head and Shoulders

But in the Forex market, you see head and shoulders patterns that look more like this:

Or this

The standard head-and-shoulders top pattern is a signal that a currency pair is set to fall once the
pattern is complete and is usually formed at the peak of an upward trend. A second version called
the head-and-shoulders bottom (or inverse head and shoulders), signals that a security's price is set
to rise and usually forms during a downward trend. In either case, the head and shoulders indicates
an upcoming reversal, so this means that the currency pair is likely to move against the previous
trend.

3