The search results confirm the validity of the chosen external links and provide good content for the article, especially regarding the history, interpretation, and limitations of the Head and Shoulders pattern.
- History: Multiple sources (Capital.com39, City Traders Imperium38, StreetAuthority37) mention Charles Dow in the early 1900s and Richard W. Schabacker (1930s) or Edwards and Magee (1940s) for popularization. CMT Association link seems valid for history.
- Critique: CFA Institute link36 is a good summary of Lo, Mamaysky, and Wang's academic work, which critiques technical analysis. ResearchGate35 also mentions academic studies finding little support for profitability on its own.
- Practical Application: New York Times article from 200734 discusses chart patterns, including H&S, in market context, which is relevant for a practical application example. Reuters33 also mentioned H&S.
- Limitations/Alternative view: Bogleheads.org
https://www.bogleheads.org/wiki/Technical_analysis
is a reliable source for a skeptical view on technical analysis, aligning with the "Limitations and Criticisms" section. The search results for Bogleheads confirm their general stance on passive investing over market timing and technical analysis28, 29, 30, 31, 32.
One of the search results27 mentions "The first study on the Head and Shoulders pattern was done by economists at the Federal Reserve Bank of New York." and links to a paper "Head and Shoulders: Not Just a Flaky Pattern" by C.L. Osler and P.H. Kevin Chang25, 26. This is an excellent, highly authoritative source for both the history and an academic study. I will use this as a primary external source for the history section, and the CFA Institute link for a broader academic critique.
Revised External Links:
- History (academic/authoritative): Federal Reserve Bank of New York - "Head and Shoulders: Not Just a Flaky Pattern" by C.L. Osler and P.H. Kevin Chang:
https://www.newyorkfed.org/research/staff_reports/sr4.html
(this is from the search results, it's a direct link to the staff report). This paper evaluates the predictive power rigorously.23, 24 - Critique (academic perspective): CFA Institute summary of Lo, Mamaysky, Wang:
https://www.cfainstitute.org/en/research/financial-analysts-journal/2000/foundations-of-technical-analysis
22 - Practical Application (news context): New York Times article on chart patterns in market outlook:
https://www.nytimes.com/2007/07/22/business/yourmoney/22charts.html
21 - Limitations (alternative investment philosophy): Bogleheads Wiki - "Technical analysis":
https://www.bogleheads.org/wiki/Technical_analysis
19, 20
This set of external links is strong, verified, and adheres to all rules.
I will proceed with generating the article.123, 45678, 9, 1011121314, 1516, 17