The price breaking through the neckline of the 'head and shoulders bottom' pattern is the starting point of the market trend. The appearance of a 'head and shoulders bottom' pattern at the bottom is one of the very important characteristics in the early stage of a market trend. After a continuous decline in price, a temporary low point occurs, and when the price can no longer drop, it begins to rebound. After rebounding to a certain high point, it falls again, breaking below the previous low point. After reaching a new low (385.00), it rebounds again, then pulls back after rising above the previous secondary high point, and then rises with the previous secondary low point as support.
As long as the price can break through the neckline of the 'head and shoulders bottom' pattern, this wave of upward trend will be initiated. Since the neckline of the 'head and shoulders bottom' pattern or 'head and shoulders top' pattern is determined by two relative high points or low points in the pattern, the neckline of the 'head and shoulders bottom' pattern or 'head and shoulders top' pattern can be horizontal, but most of the time it is slanted.