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TERM OF THE DAY

A head and shoulders pattern is used in technical analysis. It is a specific chart formation that predicts a bullish-to-bearish trend reversal. The pattern appears as a baseline with three peaks, where the outside two are close in height, and the middle is highest.

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Intel shares fell sharply after the chipmaker issued a soft first quarter outlook. Here are important chart levels to watch. Read more

Neckline: Overview and Examples in Technical Analysis

A neckline is a support or resistance level found on a head and shoulders pattern used by traders to determine strategic areas to place orders. Read more

Inverse Head and Shoulders: What the Pattern Means in Trading

An inverse head and shoulders, also called a head and shoulders bottom or a reverse head and shoulders, is inverted with the head and shoulders top used to predict reversals in downtrends. Read more

Trough: Examples of Phase in Business Cycle

A trough, in economic terms, can refer to a stage in the business cycle where activity is bottoming, or where prices are bottoming, before a rise. Read more

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