Head And Shoulders Pattern

Last post 09-12-2008 3:21 PM by leed0g. 3 replies.

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06-01-2008 8:37 AM

karand
Joined on 07-10-2007
Posts 5,582

Head And Shoulders Pattern

A technical analysis term used to describe a chart formation in which a stock's price:

1. Rises to a peak and subsequently declines.
2. Then, the price rises above the former peak and again declines.
3. And finally, rises again, but not to the second peak, and declines once more.

The first and third peaks are shoulders, and the second peak forms the head.

The "head-and-shoulders" pattern is believed to be one of the most reliable trend-reversal patterns

Filed under: charts

07-17-2008 9:23 PM In reply to

helen879
Joined on 07-07-2007
Posts 661

Re: Head And Shoulders Pattern

Thanks for the info.

09-12-2008 12:51 PM In reply to

J828
Joined on 04-24-2007
Posts 1,684

Re: Head And Shoulders Pattern

Interesting analysis. I hadn't thought about it before. Are they common?

09-12-2008 3:21 PM In reply to

leed0g
Joined on 06-13-2008
Posts 559

Re: Head And Shoulders Pattern

It seems pretty subjective, that's why it's so common. Like I see a bearish head and shoulders pattern for GLBC over a 6 month chart. Another bearish one for AUY over a 1-year chart for example.

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