Head And Shoulders (chart Pattern)
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Head And Shoulders (chart Pattern)
On the technical analysis chart, the head and shoulders formation occurs when a market trend is in the process of reversal either from a bullish or bearish trend; a characteristic pattern takes shape and is recognized as reversal formation. Head and shoulders top Head and shoulders formations consist of a left shoulder, a head, and a right shoulder and a line drawn as the neckline. The left shoulder is formed at the end of an extensive move during which volume is noticeably high. After the peak of the left shoulder is formed, there is a subsequent reaction and prices slide down somewhat, generally occurring on low volume. The prices rally up to form the head with normal or heavy volume and subsequent reaction downward is accompanied with lesser volume. The right shoulder is formed when prices move up again but remain below the central peak called the head and fall down nearly equal to the first valley between the left shoulder and the head or at least below the peak of the left s ...
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Market Trend
A market trend is a perceived tendency of financial markets to move in a particular direction over time. Analysts classify these trends as ''secular'' for long time-frames, ''primary'' for medium time-frames, and ''secondary'' for short time-frames. Traders attempt to identify market trends using technical analysis, a framework which characterizes market trends as predictable price tendencies within the market when price reaches support and resistance levels, varying over time. A market trend can only be determined in hindsight, since at any time prices in the future are not known. Market terminology The terms "bull market" and "bear market" describe upward and downward market trends, respectively, and can be used to describe either the market as a whole or specific sectors and securities. The terms come from London's Exchange Alley in the early 18th century, where traders who engaged in naked short selling were called "bear-skin jobbers" because they sold a bear's skin (the s ...
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H And S Top New
H, or h, is the eighth Letter (alphabet), letter in the Latin alphabet, used in the English alphabet, modern English alphabet, the alphabets of other western European languages and others worldwide. Its name in English is English alphabet#Letter names, ''aitch'' (pronounced , plural ''aitches''), or regionally ''haitch'' ."H" ''Oxford English Dictionary,'' 2nd edition (1989); ''Merriam-Webster's Third New International Dictionary of the English Language, Unabridged'' (1993); "aitch" or "haitch", op. cit. History The original Semitic languages, Semitic letter Heth most likely represented the voiceless pharyngeal fricative (). The form of the letter probably stood for a fence or posts. The Greek alphabet, Greek Eta (letter), Eta 'Η' in archaic Greek alphabets#Eta and /h/, archaic Greek alphabets, before coming to represent a long vowel, , still represented a similar sound, the voiceless glottal fricative . In this context, the letter eta is also known as Heta to underline t ...
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H And S Bottom New
H, or h, is the eighth Letter (alphabet), letter in the Latin alphabet, used in the English alphabet, modern English alphabet, the alphabets of other western European languages and others worldwide. Its name in English is English alphabet#Letter names, ''aitch'' (pronounced , plural ''aitches''), or regionally ''haitch'' ."H" ''Oxford English Dictionary,'' 2nd edition (1989); ''Merriam-Webster's Third New International Dictionary of the English Language, Unabridged'' (1993); "aitch" or "haitch", op. cit. History The original Semitic languages, Semitic letter Heth most likely represented the voiceless pharyngeal fricative (). The form of the letter probably stood for a fence or posts. The Greek alphabet, Greek Eta (letter), Eta 'Η' in archaic Greek alphabets#Eta and /h/, archaic Greek alphabets, before coming to represent a long vowel, , still represented a similar sound, the voiceless glottal fricative . In this context, the letter eta is also known as Heta to underline t ...
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Chart Patterns
A chart pattern or price pattern is a pattern within a chart when prices are graphed. In stock and commodity markets trading, chart pattern studies play a large role during technical analysis. When data is plotted there is usually a pattern which naturally occurs and repeats over a period. Chart patterns are used as either reversal or continuation signals. There are three main types of chart patterns which are used by technical analysts: traditional chart patternHarmonic Patterns* candlestick pattern Traditional Chart Pattern Included in this type are the most common patterns which have been introduced to chartists for more than a hundred years. Below is a list of the most commonly used traditional chart patterns: Reversal Patterns: # Double Top Reversal # Double Bottom Reversal # Triple Top Reversal # Triple Bottom Reversal # Head and Shoulders # Key Reversal Bar Continuation Patterns: # Triangle # Flag and Pennant # Channel # Cup with Handle Harmonic Pattern Harmoni ...
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