As of 03/27/2020
  Indus: 21,637 -915.39 -4.1%  
  Trans: 7,699 -346.29 -4.3%  
  Utils: 759 +1.01 +0.1%  
  Nasdaq: 7,502 -295.16 -3.8%  
  S&P 500: 2,541 -88.60 -3.4%  
YTD
-24.2%  
-29.4%  
-13.7%  
-16.4%  
-21.3%  
  Targets    Overview: 03/15/2020  
  Down arrow19,000 or 25,600 by 04/15/2020
  Down arrow6,700 or 9,000 by 04/15/2020
  Down arrow600 or 800 by 04/15/2020
  Down arrow7,000 or 8,400 by 04/15/2020
  Down arrow2,300 or 2,900 by 04/15/2020
CPI (updated daily): Arrows on 3/27/20
As of 03/27/2020
  Indus: 21,637 -915.39 -4.1%  
  Trans: 7,699 -346.29 -4.3%  
  Utils: 759 +1.01 +0.1%  
  Nasdaq: 7,502 -295.16 -3.8%  
  S&P 500: 2,541 -88.60 -3.4%  
YTD
-24.2%  
-29.4%  
-13.7%  
-16.4%  
-21.3%  
  Targets    Overview: 03/15/2020  
  Down arrow19,000 or 25,600 by 04/15/2020
  Down arrow6,700 or 9,000 by 04/15/2020
  Down arrow600 or 800 by 04/15/2020
  Down arrow7,000 or 8,400 by 04/15/2020
  Down arrow2,300 or 2,900 by 04/15/2020
CPI (updated daily): Arrows on 3/27/20

Bulkowski's Head-and-Shoulders Explained

 

My book, Encyclopedia of Chart Patterns Second EditionEncyclopedia of Chart Patterns 2nd Edition book., discusses the head-and-shoulders chart pattern in detail including performance statistics. I show a picture of it on the right.

If you click on the above link and then buy the book (or anything) while at Amazon.com, the referral will help support this site. Thanks.

-- Tom Bulkowski

$ $ $

Even if you do not follow chart patterns, you may be familiar with the head-and-shoulders top or bottom chart pattern. For head-and-shoulders tops, the pattern looks like the profile of a person from the shoulders upward. The bottom version has the profile flipped upside down. If you need more information on them, then click on the associated link.

 

Head-and-Shoulders: Symmetry

The three views of a head-and-shoulders top chart pattern, show for symmetry.

The large image to the right gives an idea of what a head-and-shoulders top pattern looks like. I conducted research on shoulder symmetry and found some interesting results.

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Head-and-shoulders top chart pattern shoulder line

Head-and-Shoulders: Peaks

 
Head-and-shoulders chart pattern measure rule

Head-and-Shoulders: Valleys

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Head-and-Shoulders: Necklines

Head-and-shoulders necklines

A neckline is a trendline that connects the two armpits of a head-and-shoulders pattern. I show the neckline in red in the picture to the right for head-and-shoulders tops and bottoms.

The findings for this are simple and they relate to neckline slope.

These results can help you pick which head-and-shoulders pattern to trade, given that everything else is the same. Choose the configuration that has the highest performance. Your selection may be a dud anyway because you are dealing with probabilities. However, information such as this gives you an edge over other traders. Sometimes that edge is all you need to slice your way to higher profits.

-- Thomas Bulkowski

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See Also

 

Support this site! Clicking any of the books (below) takes you to Amazon.com. If you buy ANYTHING while there, they pay for the referral.

My novels:  Bumper's Story Head's Law

Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns

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Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.
Some pattern names are registered trademarks of their respective owners.

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