head and shoulders

head and shoulders
In technical analysis, a pattern that results where a stock price reaches a peak and declines; rises above its former peak and again declines; and rises a third time but not to the second peak, and then again declines. The first and third peaks are shoulders, while the second peak is the formation's head. technical analysts generally consider a head and shoulders formation to be a very bearish indication. Bloomberg Financial Dictionary
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A sideways price formation at the top or bottom of the market that indicates a major market reversal.. Chicago Mercantile Exchange Glossary

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   Used in technical analysis, head and shoulders patterns are considered to be one of the most reliable of all major reversal patterns. The pattern consists of a major rally (the head) separating two smaller, though not necessarily identical, rallies (the shoulders). A neckline can be drawn connecting the bottom of the two shoulders and confirmation is normally accepted on a clear close below that neckline. The inverse head and shoulders is a mirror image of the head and shoulders. (Figure 10.)
   ► See also Technical Analysis.

Financial and business terms. 2012.

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  • Head and shoulders — Head Head (h[e^]d), n. [OE. hed, heved, heaved, AS. he[ a]fod; akin to D. hoofd, OHG. houbit, G. haupt, Icel. h[ o]fu[eth], Sw. hufvud, Dan. hoved, Goth. haubi[thorn]. The word does not correspond regularly to L. caput head (cf. E. {Chief},… …   The Collaborative International Dictionary of English

  • Head and Shoulders — may refer to:*Head and Shoulders, a short story by F. Scott Fitzgerald first published in 1920 *Head Shoulders, a shampoo brand *Head and shoulders, a chart pattern employed in technical analysis, which is a method of stock market prediction …   Wikipedia

  • Head and Shoulders™ — [Head and Shoulders] noun [U] a make of ↑shampoo (= liquid soap for washing the hair) advertised as a treatment for ↑dandruff ( …   Useful english dictionary

  • head and shoulders — adverb 1. archaic : without good reason or excuse : by force : violently 2. : beyond comparison : by far : outstandingly stood head and shoulders above the rest in character and abil …   Useful english dictionary

  • head and shoulders — {adv. phr.} 1. By the measure of the head and shoulders. * /The basketball player is head and shoulders taller than the other boys./ 2. By far; by a great deal; very much. * /She is head and shoulders above the rest of the class in singing./ See …   Dictionary of American idioms

  • head and shoulders — {adv. phr.} 1. By the measure of the head and shoulders. * /The basketball player is head and shoulders taller than the other boys./ 2. By far; by a great deal; very much. * /She is head and shoulders above the rest of the class in singing./ See …   Dictionary of American idioms

  • head\ and\ shoulders — adv. phr. 1. By the measure of the head and shoulders. The basketball player is head and shoulders taller than the other boys. 2. By far; by a great deal; very much. She is head and shoulders above the rest of the class in singing. See: far and… …   Словарь американских идиом

  • head and shoulders — /ˌhed ən ʃəυldəz/ noun a term used by chartists showing a share price which rises to a peak, then falls slightly, then rises to a much higher peak, then falls sharply and rises to a lower peak before falling again, looking similar to a person’s… …   Dictionary of banking and finance

  • head and shoulders — adverb Date: circa 1864 beyond comparison ; by far < head and shoulders above the competition > …   New Collegiate Dictionary

  • head and shoulders — adjective To a considerable degree; better; outstanding , She was head and shoulders better than any of her rivals …   Wiktionary

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