Letter to Editor
I found the cover story published in your previous issue regarding identifying market peaks with the help of technical analysis extremely interesting. Can you throw some light on the head and shoulders distribution phase pattern mentioned in the story?
- Radheya Mehta
Editor Responds: We are delighted to know that the cover story regarding identification of market peaks has provided you with good insights. A head and shoulders pattern is a chart formation that appears as a baseline with three peaks, where the outside two peaks are short in height and the middle is highest. A head and shoulders pattern implies a specific chart formation that predicts a bullish-to-bearish trend reversal. Hope we have answered your query. Keep writing to us!