A bullish to bearish trend or vice versa is indicated by a head and shoulder pattern. Simply said, this trend represents a shift from positive to negative. Business Standard, January 24, Avdhut Bagkar. The pattern consists of three peaks that are divided into three categories: left shoulder, head, and right shoulder.
It is considered a bullish indication when the MACD is above 0 and crosses above the signal line. It is considered a bearish indication when the MACD is below 0 and crosses below the signal line.
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