As of 12/06/2024
Indus: 44,643 -123.19 -0.3%
Trans: 16,879 -97.04 -0.6%
Utils: 1,036 -11.79 -1.1%
Nasdaq: 19,860 +159.51 +0.8%
S&P 500: 6,090 +15.16 +0.2%
|
YTD
+18.4%
+6.2%
+17.4%
+32.3%
+27.7%
|
44,000 or 46,000 by 12/15/2024
17,025 or 18,000 by 12/15/2024
1,025 or 1,100 by 12/15/2024
20,000 or 18,500 by 12/15/2024
6,200 or 5,900 by 12/15/2024
|
As of 12/06/2024
Indus: 44,643 -123.19 -0.3%
Trans: 16,879 -97.04 -0.6%
Utils: 1,036 -11.79 -1.1%
Nasdaq: 19,860 +159.51 +0.8%
S&P 500: 6,090 +15.16 +0.2%
|
YTD
+18.4%
+6.2%
+17.4%
+32.3%
+27.7%
| |
44,000 or 46,000 by 12/15/2024
17,025 or 18,000 by 12/15/2024
1,025 or 1,100 by 12/15/2024
20,000 or 18,500 by 12/15/2024
6,200 or 5,900 by 12/15/2024
| ||
My book, Encyclopedia of Chart Patterns Second Edition, 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.
$ $ $
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.
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.
In the study, I am comparing head-and-shoulders tops that appear symmetrical about the head (approximately equal distances from shoulder to head) to those not symmetrical. The farther the ratio of the two shoulder distances gets, the better the performance.
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
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.
Legal notice for paid links: "As an Amazon Associate I earn from qualifying purchases."
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Anybody who doesn't cut his speed at the sight of a police car is probably parked.