Here’s one of my favorite chart formations.

May 16, 2007 · Filed Under Technical Indicators · Comment 
Head and Shoulders Formations

One of the oldest and most reliable of all chart formations is the Head and Shoulders Formation. This formation takes place usually after a trend has been established and in place for some time. It can in rarer instances take place in a continuation pattern and still be effective. The two formations we are going to look at today are a Head and Shoulders Top (HAST) and a Head and Shoulders Base (HASB). Both of these formations have a high degree of accuracy and usually portend a major change in direction for a market.

See a chart and read more on Head and Shoulder formations here.

Every Success to you.

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