Glossary Term:
Head and Shoulders Pattern
noun \ˈhed ən(d)ˈshōl-dər ˈpa-tərn\
Not to be confused with the dandruff shampoo, it’s a chart pattern that vaguely resembles the head and shoulders of a very strangely shaped man. It is thought to be a precursor of a market decline. But if the market doesn’t go down, the technicians take another look and tell you that it didn’t look like a head shoulders after all. It was really a horse’s rear end.
