The head and shoulders bottom is a chart pattern that
is also referred to as an inverse head and shoulders.
A head and shoulders bottom has three sharp low points
created by three successive reactions in the price of
the stock. It is essential that this pattern form following
a prior downtrend in a stock's price. (See
more information about the Head and Shoulders Bottom
Pattern).
head and shoulders
top
The head and shoulders top is a chart pattern that
looks like a human head with shoulders on either side
of the head. A perfect example of the pattern has three
sharp high points, created by three successive rallies
in the price of the stock. (See
more information about the Head and Shoulders Top Pattern).
house spread
Among Market Maker firms, the house spread is the difference
between the highest price bid for a security, and the
highest price asked.
