The most common reversal pattern in technical analysis is the "head and shoulders" pattern. This pattern is formed when a price trend reaches a peak (the left shoulder), followed by a higher peak (the head), and then another lower peak (the right shoulder). The price then breaks below the "neckline" that connects the lows of the left and right shoulders, signaling a reversal in the previous uptrend.

The head and shoulders pattern is considered a reliable signal of a trend reversal and is widely used by traders and investors to make buy and sell decisions. It can be found in various time frames and markets, from stocks to commodities to forex. However, it is important to note that no pattern or indicator is foolproof, and traders should use other tools and techniques to confirm the reversal signal and manage their risk.

The most common reversal pattern in technical analysis is the head and shoulders pattern. This formation typically indicates a trend reversal from bullish to bearish in an uptrend. It consists of three peaks: the middle peak (the head) is the highest, while the two outer peaks (the shoulders) are lower and approximately equal in height. The neckline connects the lows between these peaks, and a break below the neckline signals the potential reversal.

For a downtrend reversal, the inverse head and shoulders pattern applies, with the head and shoulders inverted. Traders view these patterns as reliable indicators of an impending change in trend direction, helping them to enter or exit trades more effectively.

The most common reversal pattern in technical analysis is the Head and Shoulders pattern. It signals a potential shift in market direction and is widely recognised by traders. This formation appears after a sustained trend and consists of three peaks: the middle peak (the head) being the highest, flanked by two smaller peaks (the shoulders). The neckline, drawn through the lows of the two shoulders, acts as a critical support or resistance level. When the price breaks below the neckline in a topping formation, it indicates a bearish reversal. Conversely, the inverse head and shoulders pattern signals a bullish reversal. Its reliability and clear visual structure make it a favourite among traders for spotting trend changes and setting precise entry and exit points.