Inverse Head And Shoulders

Categories: Charts

A chart that looks like shoulders and a head upside-down...if you squint really hard or have had too many martinis at the company lunch.

When the chart is showing sales, company earnings, or stock market prices, a chart of this shape shows that a downward trend has reversed.

The first upside-down shoulder shows a drop, then prices or sales go up. Then there's a huge drop, followed by an increase (that's the head), and then a smaller drop followed by an increase (that's the second shoulder).

The idea is that this is the time to breathe a sigh of relief that the downturn is getting better.

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Finance: What is a Chartist?26 Views

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chart and here's a chart and here's a chart All

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right Well these are pages from the investing bible of

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a chartist A chartist is an investor really a traitor

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period of time than a longer term Really invest or

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plotted data closely follows the characteristic line there The characteristic

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line basically is plodded through all those dots Yes So

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they're going to stare at that try to figure out

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this one where the data forms what looks like Well

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the head and shoulders of someone who you know doesn't

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have a neck that's Just common pattern in trading And

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thirds of the way through there it's heading down Well

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and then you see it bottoming and then you'd be

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All right len look at this chart Where is right

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here where the data appears to We'll break away from

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the established pattern which was all just kind of boring

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Lee along down here And then suddenly everything goes up

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Yeah start doing its own thing Well maybe the company

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reported a good quarter or ah you know the government

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cut taxes again Everything went up So these were the

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tools of the chartist The chart's a chartist is the

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opposite of a fundamental investor meaning that she doesn't know

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or care what the company does for a living Really

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she doesn't care about their p e ratio nor their

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profit margins nor their debt levels on their balance sheet

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nor much of anything fundamental about how their business runs

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Chartist just care about the pattern they glean from the

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charts and all the charts always work until they don't

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And what happens when the meteor hits that is that 00:02:06.0 --> [endTime] predictable on a chart Ah

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