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Which of the following statements about a headandshoulders pattern is most likely true? a) An inverse headandshoulders pattern is preceded by a downtrend. b) Once
Which of the following statements about a headandshoulders pattern is most likely true?
a) An inverse headandshoulders pattern is preceded by a downtrend.
b) Once the neckline has been breached in the headand shoulders pattern, the price is expected to decline immediately by an amount equal to the distance between the shoulder and the neckline.
c) The weaker the rally preceding the headandshoulders pattern, the more pronounced the expected reversal.
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