Thursday, April 20, 2006
Head and Shoulders Bottom
Introduction
Like the head and shoulders top, the head and shoulders bottom is a popular pattern with investors. The reverse of the head and shoulders top, the bottom marks a reversal in a downward trend in a stock's price -...
In fact, Elaine Yager, Director of Technical Analysis at Investec Ernst and Company in New York and a member of Recognia's Board of Advisors, holds that this pattern most commonly occurs during the reversal of a major trend, a trend that has been in existence for a year or more.
While volume is important to a head and shoulders top, it is absolutely crucial to a head and shoulders bottom. An investor will be looking for increasing volumes at the point of breakout. This increased volume definitively marks the end of the pattern and the reversal of a downward trend in the price of a stock.
http://www.recognia.com/reference/patterndescr_hsb.htm
Like the head and shoulders top, the head and shoulders bottom is a popular pattern with investors. The reverse of the head and shoulders top, the bottom marks a reversal in a downward trend in a stock's price -...
In fact, Elaine Yager, Director of Technical Analysis at Investec Ernst and Company in New York and a member of Recognia's Board of Advisors, holds that this pattern most commonly occurs during the reversal of a major trend, a trend that has been in existence for a year or more.
While volume is important to a head and shoulders top, it is absolutely crucial to a head and shoulders bottom. An investor will be looking for increasing volumes at the point of breakout. This increased volume definitively marks the end of the pattern and the reversal of a downward trend in the price of a stock.
http://www.recognia.com/reference/patterndescr_hsb.htm
# posted by Cherie : 3:22 AM
