Abstract
Head and Shoulders Top (HST) is one of the traditional patterns in technical prediction tool-kit claimed to be potent to foretell security prices. Price objective is the expected post-pattern price movement that the pattern is expected to achieve immediately after price has crossed the neckline. This paper examines whether the pattern achieves the expected price objective so as to consider it as a predictive tool for superior return. The study finds HST patterns lack the traditional predictive capacity.
Keywords: Technical analysis, stock market. Stock chart, Pattern, Head and Shoulders Top, Price Objective Achievement, Predictive Tool, Superior Return.
References
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