Why double top spells danger
Article Abstract:
Charting stock price movements is one way of spotting trends and assessing future performance. Patterns emerge such as reversal patterns when a trend is ending and a new trend starting. Double bottoms may signal a stock price rise, and double tops may signal a stock price fall which may occur rapidly. This can be illustrated by looking at the stock price of Blacks Leisure. This stock peaked in 1997, and held its price for a while since investors saw buying opportunities, but the price subsequently fell, since the upward trend had been reversed.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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Beware heads and shoulders
Article Abstract:
Stock price trends can be charted using graphic methods called charting. One pattern that sometimes emerges is the head and shoulders. These are patterns found at the peak of stock price uptrends, when investors start to take profits and rallies are followed by setbacks, forming a shoulder, with a further advance to the peak, followed by a drop, forming the head. A second shoulder is then formed by a third rally, and the trend is then downward. The down side may be significant if the uptrend has been long and steep.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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Head and shoulders above the rest
Article Abstract:
Stock price forecasting can be carried out by seeking patterns in charts, and one such pattern is the head and shoulders. Two price bubbles form with a dip between for profit taking, and the second bubble being the head. A number of myths surround this formation such as the height of the head being significant, though the left shoulder height appears as closely linked to later price falls. A third price bubble creates the second shoulder before the price drops.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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