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Like mentioned, schoolbook theories do not always make practise.
A personal thing tho, if it helps you quantifying/qualifying an already valid pattern.
Not withstanding too tho, that theories are men-made. Men throughout history did
not always made logical theories (or true or even practical).
(Pre Columbus-era: the earth is flat !!!!!!!! Off late in TA: Fibbionancy !!!!!!!!
And on the Internet: the hoaxes !!!!!).
Patterns do not need any other indicators then the Price present to be valid.
Neither to quantify or to qualify themselves. A simple Price indicator is sufficient.
Whatever comes next after is then men-made.....................(see Columbus+ above).
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: maandag 9 oktober 2000 7:09
Onderwerp: Re: a beauty of a classic H&S
> Mr. Maas,
>
> The volume factor is not a theory, it is critical as to what the investor
> psychology and reactions were that caused that pattern or any TA pattern to
> form. To further confirm, I would refer anyone interested to John Murphy's
> book "Technical Analysis of the Futures Markets", page 111, under the bold
> heading "The Importance Of Volume". Mr. Murphy states, "The accompanying
> volume pattern plays an important role in the development of the head and
> shoulders top as it does in all price patterns." This is a direct quote
> from the book. My copy was published in 1986. If you are going to be in
> attendance at the TAG seminar next week, I am certain that John would
> discuss this with you....he has answered all of my questions in the past.
>
> Also, Mr. Murphy states on page 153 of his book concerning the diamond
> formation, "It is a relatively rare pattern but is more often seen at
> market tops. More often that not, it is a reversal rather than a
> continuation pattern. He also discusses the volume reactions that should
> accompany the pattern.
>
> Good trading,
> Al Taglavore
>
>
> ----------
> > From: A.J. Maas
> > To: Metastock-List <metastock@xxxxxxxxxxxxx>
> > Subject: Re: a beauty of a classic H&S
> > Date: Sunday, October 08, 2000 8:06 PM
> >
> > E&M also write that a Diamond is "only a correction" pattern. Now, for
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