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H+Ss patterns do not require volumes. Valid patterns require some form of a head
(a High or Low) and a shoulder (when possible 2 or sometimes more shoulder(s)).
A neckline can then be drawn from (one of) the shoulder(s)'s high or low(depending
on the pattern formations direction). Then by collapsing the pattern into the opposite
direction of the pattern's main trend, is when a target can be calculated (will be visable).
The distance between the Head and Shoulder High or Low can be added to or be
deducted from the neckline. That is the science part. And put in it's most simplistic form.
The art part is that it is not always scientificaly also the end target for a correction,
that a present H+S's pattern minimaly indicates. Eg., Price can move much higher or
lower as is indicated, tho will not always.
The art part too is the volumes myth. (Volumes added is more of a personal thingy).
Trends and a Trend rises or falls do not require an increase or decrease in volume.
If a Price wants to go up or down, then it will go up or down, despite the / any
change in volumes. There are tons of Indexes and Indices having H+Ss patterns, that
simply cannot be measured by/on volumes, since that their volumes cannot or will not
be calculated.
--The CRB index and the Intrest Rates to name a few.
--The CPI, all of the ww Currencies, OIL, Gold and Silver to name a few others.
All are capable to produce H+S's patterns.
==========================/////////////////////============================
The image send, shows that the Fanco(CB) stock is caught within a large Diamond
Triangle, starting with the April Low and June High. Its pattern of lower Highs and
higher Lows implies that the current VST move will find it's Waterloo at the @ 4550
shown Support line.
A down break then gives the first Sell. A move further down and then also a Low made
lower than 4000 will produce a second, next Sell, down to 2400-2450.
The NeckLine @6000 and the now 2x prooven Resistance at this level indicates that
this is now also going to happen, which then from the H+S's pattern calculated target
gives a (first) Target(T) @ 3310 (6000-(8690-6000)).
Known also from the above at the Top mentioned H+S's theory in the possibility that
the from a H+S's pattern's calculated Target(T) might not always be the correction
pattern's Trend's end Target(T), then this winter's/next years Low can well be found at
the Historicaly prooven Support @ 2600 (March/April00-Low).
Contrairy, the above will be untrue (also for the Intermediate Term) if the Price moves
up to the DownTrend's falling Resitance Line (now) declining @ 6200 AND breaks
out FROM this level.
Note:
I do not know anything about this stock other then from the doc image that was send.
Regards,
Ton Maas
ms-irb@xxxxxxxxxxxxxxxx
Dismiss the ".nospam" bit (including the dot) when replying.
Homepage http://home.planet.nl/~anthmaas
----- Oorspronkelijk bericht -----
Van: "Al Taglavore" <altag@xxxxxxxxxx>
Aan: <metastock@xxxxxxxxxxxxx>
Verzonden: vrijdag 6 oktober 2000 16:28
Onderwerp: Re: a beauty of a classic H&S
> Does the volume requirements of a H&S apply to BRCM? Should not the volume
> be much greater on the left shoulder, climaxing at the head and much less
> volume on the right shoulder? Rather than H&S, could we not be seeing a
> triple top?
>
> Al Taglavore
>
> ----------
> From: T.E.M. Lockefeer <sky40912@xxxxxxxxx>
> To: metastock@xxxxxxxxxxxxx
> Subject: a beauty of a classic H&S
> Date: Friday, October 06, 2000 12:22 AM
>
> List :
>
> Look at BRCM chart and you will find (starting about July)
> a Head and shoulder formation "out of the book" .
>
> Has anyone of you research about the % downsize of
> H&S formations ?
>
> Thanks and good weekend.
>
> Theo Lockefeer.
>
>
>
>
>
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