No not the shampoo, but a pretty neat looking technical indicator. This method could be used in either a bullish or bearish situation; however, it is important to not get slack when it comes to creating the pattern.

Official Terminology

Since there are multiple parts to this pattern, it is important that you fully understand all components that eventually complete the head and shoulders. In order to keep things brief, our terms will be focused on a breaking to the downside, but simply flip things around to create a breakout to the upside.

The overall concept of technical analysis is that a stock price follows a particular trend. Whether it be up, down, or sideways, trend lines help you determine the strength of that trend and where possible reversal points are.

Official Terminology

Trend Line – A straight line that connects at least two price points, which then shows you possible reversal points in the future. At that point, the trend line could turn into possible support or resistance. The more points it hits and longer time frame a trend line spans across the stronger it is and

Probably the easiest and most used method in technical analysis is the idea of support and resistance. Technically every stock analysis could work using support and resistance since it is the building blocks of more advanced patterns.

Official Terminology

Support – The price level where a particular stock has had trouble falling past. At this certain price, the stock has bounced off the “invisible floor or support.” An eventual break of the support usually results in a sell signal or short order. A bounce can lead to a good buy opportunity.

Resistance – The complete opposite

In order to get the most out of this site and eventually increase your returns, Speak Stocks should be used as a text book or resource. Use the ideas and concepts we share on this site, and repeatedly practice them on real world applications.

Speak Stocks aides those of all different types of trading level. Eventually you will become comfortable with different concepts. It is up to you to find the next topic that would help you best in growing as a trader.

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