Charting Terms 101

You may have heard several charting terms thrown out and not known what they mean...

Luckily for you, I may be able to help.

Heard the term "Head and Shoulders"?

Well here is what that means on a technical chart:

It usually is considered a topping pattern, meaning prices tend to head down after this pattern is realized.

There can also be an inverse head and should chart, which is the same but just in reverse and is often seen as a bottoming pattern.