| In technical analysis, a common chart formation in which a share price reaches a peak and declines, rises above its former peak and again declines and rises again but not to the second peak and then again declines. The first and third peaks are shoulders, while the second peak is the formations head. When the price falls from the right shoulder and breaks through the neckline the head and shoulders top formation has been confirmed and is regarded by technical analysts as a signal to sell the share.
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