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Hello,
I have a chart which I've had for a few months. It shows a NASDAQ
head and shoulders pattern. You can see it at:
http://DLM.50megs.com/Nasdaq-Head-and-Shoulders.htm
This is the text in the chart:
======================================
This is a logarithmic chart.
1. Red horizontal line is at 3,238.
2. Blue horizontal line is at 3,064.
3. Red vertical line extends down to 1,325.
4. Blue vertical line extends down to 964.
The 2 vertical lines are the length which extend from the peak at (5)
down to the red & blue horizontal lines respectively. According to
TA, this is a head & shoulders pattern with the head at (5) and the
shoulders at (6). The blue line should actually be the correct line.
Notice the retest at (7). However, it's hard to believe NASDAQ will
drop to 964 (???). I don't believe this will happen. Still, it is a
possibility.
======================================
I have examined this chart many times and I cannot find anything wrong
with the H&S pattern. This is a classic H&S pattern and TA is
predicting a drop to 964. Comments are welcome concerning the TA
methodology. If you are familiar with TA patterns, and most here
should be, please send me your opinions.
Daniel.
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