Global Investor | GI Bookshop | Harriman House | Holborn | Politicos | Financial Conferences | Finance Glossary | Investor Education | Derivatives | Financial Gurus | Tracker 101

Technical analysis II

Introduction| Course| Q&As | Recommended reading| Quiz |
1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22   
200000

11. Head and shoulders bottom

A Head and Shoulders Bottom is the inverse of a Head and Shoulders Top, and it signifies a reversal from a downtrend to an uptrend.

A head and shoulders bottom



The main difference between this and the Head and Shoulders Top is in the volume pattern associated with the share price movements.

The volume should pick up as the prices increase from the bottom of the head and then increase even more on the rally which follows the right shoulder. If the neckline is broken but volume is low, you should be sceptical about the validity of the formation.

Recommend Reading

Book offers!

How to Make Money in Stocks: A Winning System in Good Times and Bad
How to Make Money in Stocks: A Winning System in Good Times and Bad
William J. O'Neil
Our price: £11.04
Normally: £12.99
A Colossal Failure of Common Sense
A Colossal Failure of Common Sense
Larry McDonald, Patrick Robinson
Our price: £6.39
Normally: £7.99
Fool's Gold
Fool's Gold
Gillian Tett
Our price: £13.29
Normally: £18.99
Google
Web www.incademy.com