head and shoulders targets, page-4

skbon
A head and shoulders is classically three peaks in the sp with the 'head' higher than the others and the 'right shoulder' lower than the 'left shoulder'. There is a 'neckline' of support off which the sp bounces either side of the head and then breaks below after forming the left shoulder. If this happens a continued fall can be expected.
A head and shoulders can be a bottoming feature as well, forming upside down and indicating a climb in the sp.
There is a brilliant resource for information on this stuff at:
http://stockcharts.com/school/doku.php?id=chart_school

Of course, these patterns are always easier to spot after the event!