Head and shoulders
A reversal pattern of three peaks with the middle one highest. The “neckline” through the lows is the trigger level.
Related terms
Double top
Two highs at a similar level with a dip between. A break below the…
Candlestick
A chart bar showing the open, high, low and close for a period.…
Doji
A candle whose open and close are almost equal, showing indecision.
Double bottom
Two lows at a similar level with a rally between. A break above…
Engulfing pattern
A candle whose body completely covers the previous candle’s body…
Flag pattern
A short, tight counter-trend channel after a sharp move. It is…