Educational Post: The "Head & Shoulders Bottom Reversal" Head and Shoulders Bottom (Reversal) Example: http://stockcharts.com/help/data/media/chart_school/chart_analysis/chart_patterns/head_and_shoulders_bottom_reversal/hs-botslopedn-alk.png Neckline: The neckline forms by connecting reaction highs 1 and 2. Reaction High 1 marks the end of the left shoulder and the beginning of the head. Reaction High 2 marks the end of the head and the beginning of the right shoulder. Depending on the relationship between the two reaction highs, "the neckline" can slope up, slope down, or be horizontal. The "slope of the neckline", will affect the pattern's degree of bullishness. A "downward slope", is "more bullish" than an "upward slope". Example of a "Triple 000" Head & Shoulders Bottom (Reversal) ICPA http://stockcharts.com/c-sc/sc?s=ICPA&p=D&yr=1&mn=0&dy=0&i=p64571454403&r=1337519802712 ICPA Neckline: > Sloped downward From 0.0079 down to 0.0065 From 0.0042 down to 0.0030 Example: $GOLD http://stockcharts.com/c-sc/sc?s=$GOLD&p=D&yr=1&mn=0&dy=0&i=p30558657773&r=1337521098250 > $GOLD Neckline: From 1804.40 down to 1792.70 Left-Shoulder is at 1535.00 Head is at 1523.90 Right-Shoulder is at 1526.70 Head and Shoulders Bottom (Reversal) http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:head_and_shoulders_b http://stock-trading.dojispace.com/index.php/2011/05/head-and-shoulders-pattern/ http://www.trending123.com/TEMPORARY/Stock-Analysis-November/Inverted-Head-And-Shoulders-Bottom-PDC-Chart-Pattern.html http://www.trending123.com/patterns/inverted_head_and_shoulders.html http://www.tradingmarkets.com/.site/stocks/how_to/articles/How-to-Trade-Head-and-Shoulder-Above-the-Rest-79148.cfm