- CFA Exams
- CFA Level I Exam
- Study Session 19. Portfolio Management (2)
- Reading 56. Technical Analysis
- Subject 4. Chart Patterns
CFA Practice Question
The inverse head and shoulders pattern signals that ______
B. the security is set to make a downward move.
C. the security is set to make an upward and then a downward move.
A. the security is set to make an upward move.
B. the security is set to make a downward move.
C. the security is set to make an upward and then a downward move.
Correct Answer: A
Often coming at the end of a downtrend, the inverse head and shoulders pattern is considered to be a reversal pattern, as the security typically heads higher after the completion of the pattern.

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