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Head and shoulders

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Head and Shoulders Pattern on Monetary Base?
EX-SKF  Aug 30  Comment 
Now, don't take this seriously. The monetary base is not a stock that may follow or exhibit technical analysis patterns. Still, it looks to me like a "head and shoulders" pattern - a topping and reversal pattern - although the right shoulder is...
AUD/USD – Assessing Head and Shoulders
FX Street  Aug 26  Comment 
AUD/USD – Assessing Head and Shoulders Day: When the AUD/USD broke below 0.89, it was completing a... For more information, read our latest forex news and reports.
Head And Shoulders on Weekly Chart
Daily US Stock Market Fundamental & Technical Analysis  Aug 23  Comment 
The Dow followed up on the bearish continuation pattern last Friday, closing down 57 point, ending the week down 89 points in a relatively sideways week. On the weekly charts, the Dow is clearly in a congested area all of 2010 and has completed...
PowerShares QQQ ETF Is Forming A Massive Head and Shoulders (QQQQ)
Wall Street Sector Selector » Page not found  Jul 9  Comment 
The PowerShares QQQ Trust Series 1 ETF (Nasdaq:QQQQ) monthly chart is quite an amazing sight to behold.  I just did a post about how the current market structure could be similar to that of the mid(...)Read the rest of PowerShares QQQ ETF Is...
Euro Forming Head and Shoulders
TheStreet.com  Jul 9  Comment 
A head-and-shoulders bottoming pattern is being carved out in the euro. The down-sloping neckline comes in near $1.2400, and violation of that would negate the pattern.
Is a Massive Head and Shoulders Pattern Completing: Just Like On the Eve of the Second Wave Down in the Great Depression?
Phil’s Stock World - Members Section  Jul 5  Comment 
Is a Massive Head and Shoulders Pattern Completing ... Just Like On the Eve of the Second Wave Down in the Great Depression? Courtesy of Washington’s Blog In January 2009, I pointed out: The Telegraph's lead economic writer, Ambrose...
Is a Massive Head and Shoulders Pattern Completing … Just Like On the Eve of the Second Wave Down in the Great Depression?
Phil’s Stock World - Members Section  Jul 5  Comment 
Courtesy of George Washington→ Washington’s BlogIn January 2009, I pointed out:The Telegraph's lead economic writer, Ambrose Evans-Pritchard, has an interesting article arguing that we are in 1931-like conditions:A big crash has already...
Is a Massive Head and Shoulders Pattern Completing ... Just Like On the Eve of the Second Wave Down in the Great Depression?
George Washington's Blog  Jul 5  Comment 
In January 2009, I pointed out: The Telegraph's lead economic writer, Ambrose Evans-Pritchard, has an interesting article arguing that we are in 1931-like conditions: A big crash has already happened Things are very gloomy But we...
Which Way Wednesday – Pattern Recognition Special
Wall Street Sector Selector » Page not found  Jun 30  Comment 
Head and shoulders, knees and toes. Sorry, I can’t think head and shoulders without adding the second part thanks to the darned Wiggles, which my kids were raised on - better than Barney, at least…   The head and shoulders investors care...
Which Way Wednesday - Pattern Recognition Special
Phil’s Stock World - Members Section  Jun 30  Comment 
Head and shoulders, knees and toes. Sorry, I can't think head and shoulders without adding the second part thanks to the darned Wiggles, which my kids were raised on - better than Barney, at least...   The head and shoulders investors care...




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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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