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Chart Patterns: Head and Shoulders #1

The Head and Shoulders is a reversal chart pattern that indicates a likely reversal of the trend once it’s completed. A Head and Shoulder Top is characterized by three peaks with the middle peak being the highest peak (head) and the two others being lower and roughly equal (shoulders). The lows between these peaks are connected with a trend line (neckline) that represents the key support level to watch for a breakdown and trend reversal. A Head and Shoulder Bottom – or Inverse Head and Shoulders – is simply the inverse of the Head and Shoulders Top with the neckline being a resistance level to watch for a breakout higher.



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15 comments:

  1. It only takes such a great stock education for a beginner like me to understand what the chart pattern head and shuolder means. It would be very difficult to just understand by myself.

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  2. Since Im not a trader, I have no idea what a Head and Shoulders chart is. But this post has explained the details well. Good job!

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  3. This free stock course has not only enlightened me on chart patterns but also aroused my curiosity about stock trading. I will definitely give it a second thought and see how it goes.

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  4. The stock education I'm getting on this website is priceless..keep the information flowing...

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  5. It takes an expert in the stock market to give such an analysis of the penny stock market. Such investing tips can make all the difference.

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  6. Too many terms that I cannot help but be confused. What does a reversal chart pattern has anything to do with head and shoulders? This is stocks not anatomy.

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  7. How long is your free stock course? Do I need to provide credit card details?

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  8. okay i see a lot about investing tips but sadly i'm not following. Okay what is required for me to gain some of this stock education? please help out

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  9. What does a reversal chat pattern mean in terms of how you should focus your investments? I would like to know how to apply it in real life trading.

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  10. This can really help day traders in penny stocks who look for certain trends. It's a treasure trove of information.

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  11. Yet another valuable tidbit to add to my stock education. Thanks a lot for sharing.

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  12. It's better to analyze chart patterns and make your own decisions than relying on investing tips from others. Some people may mislead you into making the wrong decision.

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  13. The reversal chart pattern presents a good opportunity to make a good trade and you can tell what the trend will look like. A deep understanding of these trends is very important.

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  14. This is why stock education is really important before investing. All of this chart must be studied and understood before money is made.

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  15. Do you believe that all of these patterns naturally occur. Or are they all caused by similar company standards etc? Would love to know more about the different patterns.

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