## Don't Be Fooled by Stock Prices Anymore: Recognize Exit Signals from Head and Shoulders Top
Technical analysis of stocks features a classic pattern called **Head and Shoulders Top**, which essentially indicates that the stock is struggling to reach new highs, eventually forming three peaks—left shoulder, head, and right shoulder. If you see this pattern, it often signals an upcoming correction.
### Why does the Head and Shoulders Top form? Market psychology gives you the answer.
When the stock price rises to form the left shoulder, some investors take profits, while others remain optimistic
View OriginalTechnical analysis of stocks features a classic pattern called **Head and Shoulders Top**, which essentially indicates that the stock is struggling to reach new highs, eventually forming three peaks—left shoulder, head, and right shoulder. If you see this pattern, it often signals an upcoming correction.
### Why does the Head and Shoulders Top form? Market psychology gives you the answer.
When the stock price rises to form the left shoulder, some investors take profits, while others remain optimistic