The other popular chart pattern known as Head & Shoulder, which is very common happening in a bubbled underlying (stocks, indices, comodities, etc). Usually this pattern happens in an uptrend underlying found at the top.
This pattern has a target as high as the head to the neck, so it will decline as high as the top to the neck. This is a bullish reversal pattern, also the breakdown thru the neckline must be with a huge volume as the confirmation.
See the figure below
 |
| See the volume circled & the blue horizontal line (neck line) |
Happy Investing^^
Disclaimer ON!!!
