On a Graph Depicting a Head and Shoulders Top Pattern

question 103

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.

---

Definitions:

Universal Instantiation

A logical rule that allows one to deduce that a statement applies to specific instances given it holds for all instances.

Modus Tollens (MT)

A form of logical argument where the denial of the consequent leads to the denial of the antecedent.

Simplification (Simp)

A logical operation that breaks down complex arguments or propositions into simpler components.

Modus Ponens (MP)

A form of valid argument in deductive logic that, if a given premise is true ('if P then Q'), and the antecedent (P) is also true, then the consequent (Q) must be true.