Research method
Head and shoulders
Head and shoulders is a canonical archive-taxonomy method; this registry entry defines its inputs, output and use boundary.
- Output
- Signal
- Input
- OHLC price structure and chart scale
- Horizon
- From intraday to several weeks
- Best use
- Turn a repeatable chart condition into a falsifiable trade hypothesis.
- Input: OHLC price structure and chart scale.
- Output: signal.
- Use boundary: Turn a repeatable chart condition into a falsifiable trade hypothesis.
The graph8
How the method is built, and where it has been read
Depends on
Often reviewed together
Trendline4 readings
Often reviewed together
Dow Theory4 readings
Often reviewed together
Candlestick patterns5 readings
Often reviewed together
Flag and pennant5 readings
Often reviewed together
Volume-price analysis6 readings
Often reviewed together
Triangle pattern7 readings
Often reviewed together
Breakout confirmation9 readings
Often reviewed together
Double top and bottom14 readings
Read in the archive24 of 70 readings
1982Head and shoulders as a three-path completion test1984Stock low clusters as a cycle baseline1985Four-phase construction of the head-and-shoulders reversal1989Volume-confirmed reversal patterns, stops, and measured objectives1990Constructing falsifiable reversal patterns from price structure1990Constructing continuation patterns from congestion geometry1991Head and shoulders as a direction hypothesis1991The journal as one checklist for taken and skipped trades1991Two-average confirmation before a primary reversal call1991Candlestick body and shadow construction with three-Buddha peaks1991Wave counting as a sampling frame for head and shoulders1992A three-count drill that binds candlesticks, head and shoulders, and entry rules1997Constructing bump and run reversal channels1997Construct a head-and-shoulders before the neckline break1997Measuring chart pattern height for breakout targets1998Confirm Dow trends with Market breadth and Head and shoulders1998Testing reversal formations in bond futures1999Construction first: extra shoulders, the neckline, and the diamond test1999Dead-cat bounce, rollover, and failed reversals1999Evaluating time gaps in bond reversal patterns2000Score the misses before a pattern is a system2000Test chart patterns with confirmation, not names2000Constructing head and shoulders and double reversal patterns2001Round-number clusters behind support and pattern signals
This registry entry describes a research method. It is not investment advice and does not make a performance claim.