Head And Shoulders Bottom Complex  Previous  Next

It is a head-and-shoulder bottom with multiple shoulders, multiple heads, or both. The head is lower than the shoulders but generally not very much. There is a strong tendency for the shoulders to mirror themselves about the head. 

 
Example
 
graphic
Statistics
Percent of successful formations – 82%
Failure rate – 6%
Average time to throwback completion – 3 hours
 
Trading tactics
Compute the formation height by subtracting the value of the lowest low reached in the head from the highest high, located between shoulders, or between head and shoulder. Add the difference to this point. The result is the target price to which price will rise, at a minimum.