By: Amber Hestla, Michael J. Carr
The head-and-shoulders (HS) top is one of the best-known patterns in technical analysis. This pattern was first written about in 1930 by a financial editor at Forbes magazine who described how the HS forms and how it can be traded.
Many readers are familiar with the HS pattern. On a price chart, there will be three peaks in price at the end of the uptrend, with the center peak (the head) being higher than the other two. The peaks on the sides (the shoulders) should be about equal in height. Continue reading "This Pioneering Chart Pattern Is Still One Of The Best"
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By Elliott Wave International
Senior Analyst Jeffrey Kennedy is the editor of our Elliott Wave Junctures trader education service and one of our most popular instructors. Jeffrey's primary analytical method is the Elliott Wave Principle, but he also uses several other technical tools to supplement his analysis.
You can apply these methods across any market and any time-frame. Enjoy this lesson and then find out how you can get additional trading lessons from Elliott Wave International.
My primary tool as a technical analyst is, of course, the Wave Principle. Even so, I find great value in other forms of technical analysis, such as candlesticks and indicators. With this in mind, let's review one of my favorite old-school chart patterns -- Head-and-Shoulders. Continue reading "Learn to Spot a Head & Shoulders Pattern in Your Charts"
This week, I want to share with you a chart pattern that the pro's use everyday to great effect. The chart pattern we will be looking at, is one of my favorites as it has a high reliability factor.
The chart pattern in this short video is well known inside the professional trading community. However, outside of the pro circle it seems to be shrouded in mystery.
Continue reading "A chart pattern the pro's use everyday (New Video)"
Yesterday, I made a video on gold - you can watch it here. Today, I have been looking at a market that has a lot of potential on the upside based on its relationship to the gold market and a classic chart formation. This particular chart formation is one of the most reliable in the arsenal of patterns that I watch. Making this pattern even more powerful was the fact that our "Trade Triangle" technology kicked in today for the first time in six months for this particular stock.
The chart formation we are talking about is called a "head and shoulders" formation. This formation is well-known to any serious market technician as it has proven to be one of the most powerful and reliable formations over the years. Another positive about this formation is that it actually measures how far a move will travel on the upside or downside. You can have a "head and shoulders" top which would indicate prices going lower, or you have a "head and shoulders" bottom indicating prices going higher.
In this short video, which lasts four minutes you'll see exactly how I analyzed this particular stock and what the upside potential is for this market. There is no charge for watching the video and no registration is required.
I highly recommend that you take four minutes to watch this educational training video and see how you can benefit from this particular formation.