Head and Shoulders

Trading Basics

Head and Shoulders

A complex price pattern that forms in an uptrend and suggests a reversal.

Head and Shoulders pattern in the AUD/NZD pair
Head and Shoulders pattern in the AUD/NZD pair

Other Trading Basics

Collateral

The resources put up by the trader to enter a trade.

Requested by the counterparty and normally in the form of cash but sometimes other liquid assets like shares.

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Bank of England

The UK’s central bank responsible for setting interest rates for Sterling and maintaining stability in the UK’s financial industry.

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