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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)).
Please refer to Edward's and McGee's "Technical Analysis of Stock Trends"
page 63,64,65,66. In part:
(p.64) A. A strong rally ..on which trading volume becomes very heavy.
B. Another high volume advance which reaches a higher level that
the top of the left shoulder...
C. A third rally, but this time on decidedly less volume than
accompanied the formation of either the left shoulder or the head...
D. Finally , decline of prices in this third recession down
through a.." neckline."
Note that each and every item cited in A,B,C and D is essential to a valid
Head-and-Shoulders Top.
(All of this is on p.64)
Because of the lack of volume confirmation, that is why I suggested that
this could be a triple top formation.
>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.>
I do understand. My reference was to the stock (BRCM) that was mentioned.
Al Taglavore
----------
> From: A.J. Maas <anthmaas@xxxxxxxxx>
> To: Metastock-List <metastock@xxxxxxxxxxxxx>
> Subject: Re: a beauty of a classic H&S
> Date: Saturday, October 07, 2000 7:45 AM
>
> 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. > --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.
>
> > 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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