- CFA Exams
- CFA Level I Exam
- Study Session 19. Portfolio Management (2)
- Reading 56. Technical Analysis
- Subject 4. Chart Patterns
CFA Practice Question
Which statement is false?
A. Continuation patterns suggest the market will maintain an established trend.
B. Continuation patterns help traders differentiate between a price action in full reversal and those merely taking a pause.
C. The left and right shoulders in a head and shoulders pattern are always symmetrical.
Explanation: C is not true. Symmetry is not an absolute requirement. Shoulders can be different widths as well as different heights.
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