- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 67. Technical Analysis
- Subject 4. Common Chart Patterns
CFA Practice Question
In the head and shoulders pattern, which part is the first signal that the rally may be coming to an end?
B. The right shoulder
C. The neckline
A. The head
B. The right shoulder
C. The neckline
Correct Answer: A
A reversal may be starting from the head.
User Contributed Comments 4
User | Comment |
---|---|
reccy | Volume during advance of left shoulder should be > during adv of head: 1st warning sign |
farhan92 | The high of the head is always a sign of good things coming to an end. |
Sagarsan88 | But how do you know it is the head...if the other shoulder has not even formed? |
MathLoser | Belief |