Head and Shoulders

Going off of henry’s post below you’ll notice that he mentions a pattern called head and shoulders. In the Technical Analysis (TA) world there are terms and patterns that are used to describe patterns we believe are on the charts.

The head and shoulders pattern is a good one to look for when looking for a reversal of the trend. The name of this pattern is self explanatory. You are looking for a pattern that has 1 high peak in between 2 similarly high peaks on either side. This is used to help define tops on the chart. Below is an example of the head and shoulders pattern.

To read how to take advantage of this pattern visit this link. It has LOTS of different patterns to look for and in depth details about how to trade them. http://thepatternsite.com/hst.html