A Technical Analysis chart pattern signaling a bullish reversal. It consists of three bottoms and their corresponding tops. The lowest bottom is known as the Head, where the bottom to the left is known as the Left Shoulder and the bottom to the right is known as the Right Shoulder. The line connecting the two tops is known as the neckline. A prerequisite of any reversal is the existence of a trend, a downtrend in this case. In the course of a downtrend, as defined by consecutive lower tops and lower bottoms, the presence of a higher bottom warns for a potential reversal. A decisive break of the neckline signals the end of the prevailing downtrend and the beginning of an uptrend.
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