Tag Archives: head and shoulders pattern
The latest panic was caused by a reversal in 10-Year Note yield and a possible invalidation of a head and shoulders bottom that has been forming since 2015.
The bulk of classical technical analysis charting is based on confirmation bias: chartists look for patterns that confirm expectations tied to future economic conditions. But biased analysis is wrong more often than it is right. A recent example is included.
A recent failure of an island reversal pattern in the chart of the 10-Year Note yield adds to a long list of failed chart patterns in the last few years and reinforces claims that they are random formations. In the … Continue reading