Diana Shipping DSX (Please read previous blogs for better understanding)
For Chart: Click here
Shoulder 1: Mid dec 07, Head: Mid Jan 08, Shoulder 2 Early Feb
Note : This head and shoulder pattern has some flaws:
1) not at all symmetrical. There is a significant difference in the levels of two shoulders.
2)Neckline is downward sloping (Neckline is formed by joining the two peaks in the head and shoulder pattern, see the above fig to understand what is a downward sloping neckline)
3)and some more.
I just want you to track this stock for fun. I just came across this chart and thought it was worth sharing. Keep in in mind this head and shoulders pattern has its flaws, but you never know may be you will see price go up by X. (i.e. around 35). You will find much better head and shoulder patterns than this one if you go through a lot of charts. Its not possible for me to dedicate so much time so I encourage you all to share them on this blog.
2 comments:
Hey, in the "Beautiful Example of Head and Shoulders" u have shown shown "Neckline" as a line joining the trough of shoulder but ind the current article u are showing "Neckline" as the line joining the peak...
Can u please clarify.....
Hey Hemant I am sorry for creating confusion. Actually "Beautiful Example of Head and shoulders" is called Head and shoulders pattern where as "Head and shoulders Pattern in the making" is an inverted Head and shoulders pattern.
I will post a new blog to make it clear.
I really appreciate your participation, this is how I want this blog to be....Interactive.
Gud job heamnt.
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