Question about technical indicators

[Weizfx]

What it the difference between the "cup & handle" pattern and the "head & shoulders" pattern? They look pretty much the same to me, except the additional "cup" in "H & S". Does it mean anything?

 

[Enivid]

They are very different. I don't even know what's similarities do they have.

 

[Easy Trader]

If you 'very loosely' interprit the head and shoulders it could be proceved as a cup with two handles. Is there a meaning to the other handle...in my opinion, no.No one pays attention to the cup&handle pattern, EVERYONE looks for or notices the head&shoulders, this again in my opinion is the difference and why I don't trade the cup&handle. Its not particularly the pattern that is reliable its the order flow that is placed there (the neck line of the H&S), when the orders no longer get placed the pattern is no longer reliable. This is why Fib retracments are more reliable than Gann retacments. Patterns are awesome to trade and have a leg up on mechanical systems (in my opinion) but don't look to far into them, the more they jump off the chart at you the better.

 

[ExperSignal]

Thomas Bulkowski has a few excellent books on chart patterns. From his website:

http://www.thepatternsite.com/cup.html

http://www.thepatternsite.com/hst.html

 

[Weizfx]

Thanks for the answers! I usually trade technical pattern because that is what I learned in technical analysis course. Some of them work and some don't, but like Easy Trader, I found out that the H&S is much more reliable. What other pattern you consider reliable? thanks

 

[Easy Trader]

For me, double/triple tops&bottoms, rising/falling wedges.