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On a Graph Depicting a Head and Shoulders Top Pattern

Question 78

Multiple Choice

On a graph depicting a head and shoulders top pattern, the neckline support:


A) indicates a bull market when it is pierced.
B) is the trend line that existed prior to the head and shoulders pattern appearing.
C) is a straight line connecting the high points of the left and right shoulders.
D) indicates a reversal signal anytime it is broken through in a downward direction.
E) is a line drawn connecting the humps created by the left and right shoulders.

Correct Answer:

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