CFA Practice Question

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CFA Practice Question

Which one of these patterns is not a reversal pattern?

A. Triple bottom
B. Inverse head and shoulders
C. Pennant
Correct Answer: C

Note that just because a pattern forms after a significant advance or decline does not mean it is a reversal pattern. Many patterns, such as a rectangle, can be classified as either reversal or continuation. Much depends on the previous price action, volume, and other indicators as the pattern evolves. This is where the science of technical analysis becomes the art of technical analysis.

User Contributed Comments 2

User Comment
sgossett86 insightful
sshetty2 More like the art pf page self-fulfilling prophecies
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