Head and Shoulders refers to a specific pattern observed in price charts, indicating a potential trend reversal. This pattern is commonly seen in market movements, signifying a shift from bullish to bearish sentiments.The formation consists of three peaks: two smaller ones on either side (the “shoulders”) and a larger peak in the middle (the “head”). The left shoulder is formed during an initial price rise, followed by a decline. The price then rises again to create the head and subsequently falls before forming the right shoulder. Traders often view the Head and Shoulders pattern as a signal to sell or short the asset, given its implication that a downward trend may follow. Inverted Head and Shoulders, on the other hand, suggests a possible bullish reversal and features a similar structure but inverted.Recognizing this pattern can help traders make informed decisions, but it should ideally be used alongside other analysis tools for better accuracy.