The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from optionalpha.com and welcome back to the daily call. Today, we’re going to be talking about the basics of a head and shoulders chart pattern. Some of you might be wondering why, Kirk, on earth are we talking about chart patterns on a podcast that's focused on options trading. It’s because I think when it comes to chart patterns, the head and shoulders pattern is probably a little bit, slightly more reliable than some of the other patterns out there and obviously, easier to spot. It's not as subjective, necessarily as some of the other patterns. My biggest rub or push with many chart patterns and using lines on charts, etcetera is that it’s very much subjective, meaning that you can give a chart to say 10 different people and I could tell them, draw support and resistance, draw trend lines, draw channels and you could potentially get 10 completely different things. Head and shoulders patterns in most cases are pretty easy to find and spot once they've mainly completed