Earnings 5-17 before market open,
Head and shoulders patterns do not always do well in a bull market. There can be more than one head and more than 2 shoulders in some cases.
After long bullish trends, the price rises to a peak and subsequently declines to form a trough.
The price rises again to form a second high substantially above the initial peak and declines again.
The price rises a third time, but only to the level of the first peak, before declining once more.
The first and third peaks are shoulders, and the second peak forms the head.
An inverse or reverse head and shoulders pattern is opposite that can signal that a downward trend is about to reverse into an upward trend. In this case, the stock's price reaches three consecutive lows, separated by temporary rallies. Of these, the second trough is the lowest (the head) and the first and third are slightly shallower (the shoulders). Inverse head and shoulder patterns do well in a bull market. The opposite is true in a bear market.
No recommendation
Head and shoulders patterns do not always do well in a bull market. There can be more than one head and more than 2 shoulders in some cases.
After long bullish trends, the price rises to a peak and subsequently declines to form a trough.
The price rises again to form a second high substantially above the initial peak and declines again.
The price rises a third time, but only to the level of the first peak, before declining once more.
The first and third peaks are shoulders, and the second peak forms the head.
An inverse or reverse head and shoulders pattern is opposite that can signal that a downward trend is about to reverse into an upward trend. In this case, the stock's price reaches three consecutive lows, separated by temporary rallies. Of these, the second trough is the lowest (the head) and the first and third are slightly shallower (the shoulders). Inverse head and shoulder patterns do well in a bull market. The opposite is true in a bear market.
No recommendation