Head and Shoulders


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Head and Shoulders

In technical analysis, an indicator in which the price of a security rises to a peak, falls, rises to a higher peak and then falls again, and, finally, rises to a third peak roughly equal to the first and falls again. While, in general, a head and shoulders pattern is considered a bearish indicator, it contains various bullish points, namely immediately before the price rises. These bullish points are called the neckline. When technical analysts see a security falling toward the neckline, they view this as a buy signal because historical patterns have shown that the security's price will rise soon thereafter. On the other hand, the third peak is considered a sell signal.
References in classic literature ?
Again he got the helpless man's head and shoulders on the gunwale.
Passing the end of the slight elevation of earth upon which the dead man's head and shoulders lay, his foot struck some hard substance under the rotting forest leaves, and he took the trouble to kick it into view.
Also, standing in the companionway, head and shoulders out and glass in hand, I could fling the wine overboard.
We had not long to wait, and when I saw the head and shoulders of a man appear above the crest of the knoll, I sprang to my feet, with a heartfelt cry of joy, for it was Delcarte.
In less time than the quickest tongue could tell it, these words were exchanged, and Sir Mulberry shortening his whip, applied it furiously to the head and shoulders of Nicholas.
He only stuck his head and shoulders out of the window crying to the cabman.
You didn't drag Richard in by the head and shoulders in that way.
He knew that she had a husband, but had hardly believed in his existence, and only now fully believed in him, with his head and shoulders, and his legs clad in black trousers; especially when he saw this husband calmly take her arm with a sense of property.
Sowerberry: speaking as well as she could, through a deficiency of breath, and a sufficiency of cold water, which Noah had poured over her head and shoulders.
Weller, attracted by his master's cries, had not rushed in at the moment, and, snatching up a meal--sack, effectually stopped the conflict by drawing it over the head and shoulders of the mighty Pott, and clasping him tight round the shoulders.
But Skipper did not awake and a fine spray of rain, almost as thin as mist, made Jerry curl up and press closely into the angle formed by Skipper's head and shoulder.
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