Head and Shoulders Continuation Pattern

Originally I was making this post to argue that a head and shoulders is a reversal pattern and not a continuation pattern. However now the post is going to become a quick lesson. Going by what I've learned in the past I've always thought this was true, because such sites as Investopedia, where I originally began stated so. But after doing a recent Google search I've come up with a few Google book results which have cited the head and shoulders as a continuation pattern as well. The book that I link to is authored by John Murphy, a reliable resource in my opinion, and also author to the first technical analysis book that I've read. So apparently it is in fact a valid continuation pattern.

Anyway here is the example charts I was going to post. If you'd like to believe in the [inverse] head and shoulders pattern and be bullish on these two ideas, you can go right ahead. I cannot fathom either of these patterns reaching their targets though.

HEAD AND SHOULDERS REVERSAL

The first chart is of EMR, Emerson Electric Co. This is clearly a very valid inverse head and shoulders breakout, except the volume isn't necessarily exactly confirming.

HEAD AND SHOULDERS CONTINUATION

The second, which I originally thought was an invalid use of the pattern, is in Gold. Possible target on Gold lies at 1300 if this is truly an inverse head and shoulders.