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Theo:
>From page 119, fig 5.4a of "Technical Analysis of the Futures Market" by
John Murphy:
"A triple top. Similar to the head and shoulders except that all peaks are
at the same level. Each rally peak should be on lighter voulume. The
pattern is complete when both troughs have been broken on heavier volume.
The measuring techinque is the height of the pattern projected downward
from the breakdown point. Return moves back to the lower line are not
unusual." Also, "Heavy upside volume on the completion of the bottom is
also essential."
In my observation, the reaction moves back to the lower break line
re-affirm the pattern and offer another opportunity to short with
conviction. It is this feature that distinguish the triple top from the
H&S.
My chart of BRCM show that the highest close of 273 10/16 occurred on 8-24
with a vol of 6054800. The reaction low of 248 9/16 occurred on 8-29 on vol
of 10521300. Thus, my response to your original post was that this could
well be a triple top rather than a H&S.
The only reason (hopefully valid) to have this discussion was to better
hone our TA and chart recognition abilities so that we can better read the
market and realize the most of the profit potential from various patterns.
As you are aware, the money is made when one exits, not when when one
enters.
Al Taglavore
----------
> From: T.E.M. Lockefeer <sky40912@xxxxxxxxx>
> To: metastock@xxxxxxxxxxxxx
> Subject: Re: a beauty of a classic H&S
> Date: Tuesday, October 10, 2000 2:35 AM
>
>
> Hello Al,
>
>
> ----- Original Message -----
> From: "Al Taglavore" <altag@xxxxxxxxxx>
> To: <metastock@xxxxxxxxxxxxx>
> Sent: Friday, October 06, 2000 5:28 PM
> Subject: 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?
>
> TL : Yes al volume conditions are as you described it.
>
>
> Rather than H&S, could we not be seeing a
> > triple top?
>
>
> TL : What is the difference ? consequences ?
>
> Thanks
>
> Theo Lockefeer.
>
>
>
> >
> > 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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