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Head and Shoulders

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Head and Shoulders continues to form
Fusion Investing and Analysis  Nov 30  Comment 
The XJO continues to form the head and shoulders pattern I've been looking for, the market is being fashionable by putting on a 80's inspired padded shoulder pad and keeping everyone waiting. While economics conditions continue to improve the...
Complex Head and Shoulders
Charts and Coffee Blog  Nov 10  Comment 
I am watching this intraday complex head and shoulders pattern. I’m keeping a pretty simple strategy. I’m going to stay with shorts such as REV until I see $TRIN dipping below 1 and/or this pattern invalidated. For now, $TRIN is hanging in...
Potential Fly in Bull Ointment: Early Stage Head and Shoulders Formation
Fund my Mutual Fund  Nov 6  Comment 
Many things we are seeing now on the charts are similar to what was happening mid summer.  Many of us (hand raised) were excited about a potential "head and shoulders" formation that was in process of being created.  (what the heck is a head and...
Growth head and shoulders above India
Sydney Morning Herald  Sep 22  Comment 
AUSTRALIA is poised to be the world's fastest growing industrialised nation over the next four decades, with a rate of population growth higher even than India.
Head and Shoulders Anyone?
Naked Hedge Fund  Sep 3  Comment 
Currently on the SPY there is a potential for a head and shoulders pattern, which is considered a bearish pattern and start to a downtrend. There is a simple and clear explanation at ChartPatterns.com The left shoulder and the head have been...
Unemployment Head and Shoulders pattern
The Swamp Report  Aug 10  Comment 
Here's an interesting chart from the Slope of Hope. The head and shoulders pattern is a classic chart pattern that technical analysts associate with a subsequent major collapse.  This one shows the percent of population working and how it might...
Alcoa (AA) – Inverse Head and Shoulders Chart
Chart Analysis  Aug 5  Comment 
I charted Alcoa (NYSE: AA) this morning when it was trading at $13.02.  Thanks to Qmar who suggested through Twitter I check out AA and the "huge inverse head and shoulders".  I highlighted what I think he saw.  I drew the chart from the past...
Head And Shoulders. Looks Like AK Steel Got Dandruff
The Wild Investor  Jul 28  Comment 
A look at the latest chart shows a nice possible head and shoulders forming. Right now it looks like we are waiting for the completion of the last shoulder. Look inside for more details.
Shrugging Off the Dreaded ‘Head and Shoulders’
Wall Street Journal  Jul 23  Comment 
Plenty of bloggers -- ourselves included -- pointed out earlier this month that some market watchers were seeing a "head-and-shoulders" pattern cropping up in equities charts. Did that supposedly ominous development portend a market dropoff? Nope.
RIP Head and Shoulders
Samurai Trader  Jul 16  Comment 
The Nasdaq left no doubt about the head and shoulders: It is dead. We are now at a new high, with lots of momentum and not much overhead resistance. Both the simple and exponential 200dma's are distant memories. The SPX had a late rally that made...
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more ▼WIKI ANALYSIS
This article is part of WikiProject Definitions. Consider editing to improve it. View articles referencing this definition.
 
TOP CONTRIBUTORS
Sr. Associate
Lance Jepsen

Head and shoulders is a technical analysis term used to describe a chart formation in which a stock's price:

1. Rises to a peak and then declines to a certain price called a neckline. This is the left shoulder. 2. The price rises again, this time above the former peak and again declines to the neckline. This is the head. 3. The price rises again, but not to the head peak, and declines once more to the neckline. This is the right shoulder.

The are two types of head and shoulders patterns, a Bearish Head and Shoulders Top, and a Bullish Head and Shoulders Bottom.

A Bearish Head and Shoulders Top usually occurs after a long uptrend and is a trend reversal pattern. It gives a sell signal at the formation and closing of the right shoulder.

Image:bearishhs.gif

A Bullish Head and Shoulders Bottom usually occurs after a long downtrend and is a trend reversal pattern. It is a Bearish Head and Shoulders Top flipped upside down and is a buy signal at the closing of the right shoulder (breakout).

Image:Bullishhs.gif

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