iCharts Discussions

[girishhu1]

[leo15175]

[measoldier]

dear casper pls dont stop postin. i m reading ur posts on daily basis. pls dont bother wht people r saying. i believe
" in stock market first you learn how things happen and get the experience once u get it the money will follow". in tht context this thread is very helpful. for learning thanks.
keep posting the strategies
anybody who feel casper shud continue pls post him to continue

[pennywise]

Casper,

I find your discussion very informative and I am learning a lot from your detailed discussion. Just ignore the barkings of some stray (street) dogs which go astray sometimes.

[casper]

newinvestor, drsureshsbs,vinst,girishhu1, measoldier and pennywise.....

thanks for ur wholehearted support!!!!

when i first saw leo's post, i really started to think that i am spoiling my as well as ur time

but ultimately its ur support and encouragement that keep me going on, im really grateful to all of u

[casper]

[newinvestor]

[casper]

thank you newinvestor,
im just searching some classical example of chart patterns from jchart eod, i will surely start posting again as soon as i get them,

we are almost done in simple, easily availabe patterns, now the remaining are a little complex one and comes rarely , but i hope to start posting by tomorrow, in the mean time,just feel free if u need to ask any thing

[mrvishal_g]

Happy Diwali Casper/other freinds,
Casper you r doing a great job, Keep it up.

I think if we dont like any chat, we should not enter it to disturb others.
Vishal

[drsureshbs]

Casper just carry on .Uninvited guest r inevitable some time.Living with criticism valid or not is a leadership quality. By the way is that pm is all about.I didt get it

[SwingTrader]

Leo's forum access has been removed. Such people will always pop in to the forum as it is a free forum, any registered user can post....can't help. We will ban him as many times as he returns with a different ID

Casper...please continue the good work!!!

[ProTrader]

ST I can't resist saying 5 lines...

Leo thoda kum piyo,
yaha timepass karne ke liye kuch bhi likriyo,
tumhara fatahall sab ko dikhriyo,
admin sota hain (thoda mota bhi hain), tum uska advantage leriyo
jitni baar aayoge, kasam weekend ki tumko ban karriyo



Folks, there will always be criticism, when good work is being done. Take it in your stride and ride on.

--PT

[casper]

thank u st sir, pt sir, drsureshsbs and mrvishal_g for ur support and encouragements, atleast this leo episode has shown that we really a family!
grateful will be a small word to say to u, im just copying ptsir

"WHO ARE THE BEST?........ ICHARTIANS, OFF COURSE"

[girishhu1]

hellow casperji,
i am enclosing a chart of dish tv which has given a bo from asc tria at 60 and target as it appears to me is 78. on friday the scrip ended up by 6%. can i enter in this stock now? what should be my entry & exit strategy?
regards

[casper]

Head and Shoulders

A Head and Shoulders pattern forms after an uptrend, and its completion marks a trend reversal. At times, it may occur during a prolonged downtrend, as a temporary pause in the down trend. Regardless whether it formed in uptrend or down trend, it signals for a break down. The pattern contains three successive peaks with the middle peak (head) being the highest and the two outside peaks (shoulders) being low and roughly equal. The reaction lows of each peak can be connected to form support, or a neckline.

As its name implies, the Head and Shoulders pattern is made up of a left shoulder, a head, a right shoulder, and a neckline. Other parts playing a role in the pattern are volume, the breakout, price target and support turned resistance. We will look at each part individually,

1. Prior Trend: It is important to establish the existence of a prior uptrend for this to be a reversal pattern. Though at times it may mark a consolidation phase in a bigger downtrend
2. Left Shoulder: While in an uptrend, the left shoulder forms a peak that marks the high point of the current trend. After making this peak, a decline ensues to complete the formation of the shoulder. The low of the decline usually remains above the trend line, keeping the uptrend intact.
3. Head: From the low of the left shoulder, an advance begins that exceeds the previous high and marks the top of the head. After peaking, the low of the subsequent decline marks the second point of the neckline . The low of the decline usually breaks the uptrend line, putting the uptrend in jeopardy.
4. Right Shoulder: The advance from the low of the head forms the right shoulder. This peak is lower than the head (a lower high) and usually in line with the high of the left shoulder. While symmetry is preferred, sometimes the shoulders can be out of whack. The decline from the peak of the right shoulder should break the neckline.
5. Neckline: The neckline forms by connecting low of the left shoulder, the low of the base of the head, which marks the beginning of the right shoulder and expansion of the line to intersect the downward move of the right shoulder. Depending on the relationship between the two low points, the neckline can slope up, slope down or be horizontal. The slope of the neckline will affect the pattern's degree of bearishness: a downward slope is more bearish than an upward slope.
6. Volume: As the Head and Shoulders pattern unfolds, volume plays an important role in confirmation. Volume can be measured as an indicator (OBV, Chaikin Money Flow) or simply by analyzing volume levels. Ideally, but not always, volume during the advance of the left shoulder should be higher than during the advance of the head. This decrease in volume and the new high of the head, together, serve as a warning sign. The next warning sign comes when volume increases on the decline from the peak of the head. Final confirmation comes when volume further increases during the decline of the right shoulder.
7. Neckline Break: The head and shoulders pattern is not complete and the uptrend is not reversed until neckline support is broken. Ideally, this should also occur in a convincing manner, with an expansion in volume.
8. Support Turned Resistance: Once support is broken, it is common for this same support level to turn into resistance. Sometimes, but certainly not always, the price will return to the support break, and offer a second chance to sell.
9. Price Target: After breaking neckline support, the projected price decline is found by measuring the distance from the neckline to the top of the head. This distance is then subtracted from the neckline to reach a price target. Any price target should serve as a rough guide, and other factors should be considered as well. These factors might include previous support levels, Fibonacci retracements, or long-term moving averages.


The head and shoulders pattern is one of the most important formations. It is important to remember that it occurs after an uptrend and usually marks a major trend reversal when complete. While it is preferable that the left and right shoulders be symmetrical, it is not an absolute requirement. They can be different widths as well as different heights. Identification of neckline support and volume confirmation on the break can be the most critical factors. The support break indicates a new willingness to sell at lower prices. Lower prices combined with an increase in volume indicate an increase in supply. The combination can be lethal, and sometimes, there is no second chance return to the support break. Measuring the expected length of the decline after the breakout can be helpful, but don't count on it for your ultimate target. As the pattern unfolds over time, other aspects of the technical picture are likely to take precedence.