Test “Head and Shoulders”

Test: Head and Shoulders

1 / 6

What is a head and shoulders pattern considered to be?

a) A reversal pattern

b) A continuation pattern

c) A stable pattern

d) An unstable pattern

2 / 6

What defines a typical head and shoulders pattern?

a) Only the left and right shoulders

b) Only the head

c) Only the neckline

d) All of the above

3 / 6

Which statement is correct in the first method of trading using a typical head and shoulders pattern?

a) When the price breaks the neckline, you can enter the market with a buy order

b) When the price breaks the neckline, you can enter the market with a sell order

c) You can enter the market with a buy order before reaching the neckline

d) You can enter the market with a sell order before reaching the neckline

4 / 6

What is an inverted head and shoulders pattern considered to be?

a) A reversal pattern

b) A continuation pattern

c) A stable pattern

d) An unstable pattern

5 / 6

What defines an inverted head and shoulders pattern?

a) Only the left and right shoulders

b) Only the head

c) Only the neckline

d) All of the above

6 / 6

Which statement is correct in the first method of trading using an inverted head and shoulders pattern?

a) When the price breaks the neckline, you can enter the market with a buy order

b) When the price breaks the neckline, you can enter the market with a sell order

c) You can enter the market with a buy order before reaching the neckline

d) You can enter the market with a sell order before reaching the neckline

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