Please read : Beautiful Example of head and shoulders before this post.
For Chart Click Here
This may be a little difficult to understand.
Shoulder 1 Oct 07, Head Nov 07, Shoulder 2 Dec 07
The price again goes down by X.
I just want to add a note of Caution, these patterns though may look simple have a lot of complexities involved like:
the volume (Volume generally decreases as the pattern is formed), the slope of neck line, the tendlines, etc.
This post is only to give u an idea that such patterns exist.
If u come across any such pattern, i would really appreciate if u can post it on this blog for further discussions.
Sunday, February 17, 2008
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