Below is a slider quiz to test your ability to identify complex head-and-shoulders bottoms. Captions appear below the pictures in red for guidance, so be sure to scroll down far enough to read them.
1 / 5
I show a complex head-and-shoulders bottom chart pattern. This one has a left shoulder (L), two heads (H), and a right shoulder. The pattern can have multiple shoulders and one
head (frequently) but rarely will it have multiple shoulders and multiple heads. A neckline (shown in red) joins the highest armpit on the left with the highest armpit on the right. A close
above this line confirms the pattern as a valid one and is the entry signal. Often you'll see a near horizontal neckline. When the neckline tilts upward, use a horizontal line drawn starting
from the highest right armpit to confirm the pattern. Otherwise, price may never close above the up-sloping neckline. Volume is typically highest on the left side of the pattern (hard to tell in this example, so I didn't try
to draw it).
2 / 5
Find as many complex head-and-shoulder bottoms as you can. For help, click here.
3 / 5
Yes, this was an easy quiz. The neckline in this case slopes upward so use the horizontal green line as the breakout (entry signal).
4 / 5
Find as many complex head-and-shoulder bottoms as you can.
5 / 5
This quiz was harder than it looked. Pattern L-H-R is not a complex head-and-shoulders bottom. It's not even a valid (simple) head-and-shoulders bottom.
Why not? Because the pattern doesn't confirm (meaning price doesn't close above the red neckline, A). The L1-H1-R1 pattern is a valid complex head-and-shoulders bottom, though. It has
two narrow heads (at H1).
32,750 or 30,700 by 03/15/2021
on 