Understanding price dynamics rather than straight forward identification of chart pattern and its predictive ability is key. A reversal takes place after a steady downtrend. Higher lows signal buyers stepping in. Horizontal boundary shows the last resort of sellers.
Aksel Kibar, CMT
Aksel Kibar, CMTMay 11, 2025
The jargon in classical charting is very rich. There are so many derivatives of the original chart patterns. I try not to complicate things for the practitioner. I.e. the pattern below is called a complex H&S bottom. Complex because the Head itself is a double bottom. Here my focus would be on the horizontal neckline and the bullishness of the pattern if the breakout takes place after forming the higher low. More on this in coming updates. Stay tuned >>
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