Head and Shoulders Bottom
This formation is simply the inverse of a Head and Shoulders Top and often indicates a change in the trend and the sentiment. The formation is upside down in which volume pattern is different than a Head and Shoulder Top. Prices move up from first low with increase volume up to a level to complete the left shoulder formation and then falls down to a new low. It follows by a recovery move that is marked by somewhat more volume than seen before to complete the head formation. A corrective reaction on low volume occurs to start formation of the right shoulder and then a sharp move up that must be on quite heavy volume breaks though the neckline.
Another difference between the Head and Shoulders Top and Bottom is that the Top Formations are completed in a few weeks, whereas a Major Bottom (Left, right shoulder or the head) usually takes a longer, and as observed, may prolong for a period of several months or sometimes more than a year.
Read more about this topic: Head And Shoulders (chart Pattern)
Famous quotes containing the words head and shoulders, head, shoulders and/or bottom:
“A decent chap, a real good sort,
Straight as a die, one of the best,
A brick, a trump, a proper sport,
Head and shoulders above the rest;
How many lives would have been duller
Had he not been here below?
Here’s to the whitest man I know
Though white is not my favourite colour.”
—Philip Larkin (1922–1986)
“Love presses my head with carefully placed feet, wretch that he is, until he has taught me to detest chaste girls, and to live with no counsel.”
—Propertius Sextus (c. 50–16 B.C.)
“Rich are the sea-gods:Mwho gives gifts but they?
They grope the sea for pearls, but more than pearls:
They pluck Force thence, and give it to the wise.
Every wave is wealth to Daedalus,
Wealth to the cunning artist who can work
This matchless strength. Where shall he find, O waves!
A load your Atlas shoulders cannot lift?”
—Ralph Waldo Emerson (1803–1882)
“What a man is ashamed of is always at bottom himself; and he is ashamed of himself at bottom always for being afraid.”
—R.G. (Robin George)